Bitcoin traded sideways again on Wednesday in what looked more like a consolidation of the bear trend than a reversal pattern. This meant we were more likely to head lower eventually as we held strong resistance at 35500/36000 all this week.
HOWEVER, a break above 36500 was a short term buy signal, so we would need to be ready to reverse out of any shorts and into longs.
Ripple shorts at strong resistance at 0.7100/7300 worked perfectly as we hit the next target of 0.6340/6260. We bottomed exactly here as I write this morning, but a break below here looks likely, eventually.
Ethereum retested strong resistance at 2300/2350—shorts needed stops above 2400.
Today’s Analysis
Bitcoin shorts at very strong resistance at 35500/36000 target minor support at 33500/33000. We bottomed exactly here this week. A break below 32500 this week sees 31700/500 before a retest of 29000/28500.
A double bottom here would help to turn the medium term outlook positive, although this is looking increasingly unlikely now. Watch for support at 27500/27000 on any further losses.
Strong resistance at 35500/36000 has held but a break above 36500 is a short term buy signal targeting 38600 and 40000/41000, perhaps as far as resistance at 42400/800.
Ripple shorts at strong resistance at 0.7100/7300 worked perfectly as we finally target 0.6660/0.6560 and 0.6340/6260. A break below 0.6200 then targets 0.6000/5900 before a retest of 0.5200/5100. The 2019 high is at 0.4940. A break below here is catastrophic for bulls and risks a slide to 0.4400/4350.
Strong resistance at 0.6670/0.6770. A break higher can target strong resistance at 0.7300/0.7400. Shorts need stops above 0.7450. A break higher can target 0.7800, perhaps as far as 0.8000/8100.
Ethereum outlook is negative as we hold strong resistance at 2300/2350—shorts need stops above 2400. A break higher is a buy signal targeting strong resistance at 2600/2650. Bulls then need a break above 2700 for a longer term buy signal.
Holding strong resistance at 2300/2350 re-targets first support at 2200/2150 (hit as I write this morning). A break below here is a sell signal targeting 1950 and probably 61.8% Fibonacci support at 1728.
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