Crypto Charts 15

bitcoin short term chart

Last time we said

‘We are currently retracing in a wave b that should take us into the 54400/ 53000 area where we would look to buy with stops below 47100.’ We traded down to 52955 with wave b stopping exactly in our area. Remain long whist above 47100.

A break below last week low will signal wave b is tracing out a zigzag so look to add around the 50200 level. Target for the next leg up are 60500 where wave b will equal 61.8% of wave b, followed by a test of the previous high at 64870 where wave c will equal the same length as wave a. So remain long and add on dips with stops below 47100.

Ethereum short term chart

Last time we said

‘I would reduce our long by 50% now at 3475 and look to rebuy and add on the expected retracement. But we believe the upside is the predominant trend continue.’

We traded down to 3172 the 38.2% retracement level (this is often a relationship seen in crypto currency’s) before rallying up in 5 waves before yesterdays sharp sell off. Given the divergence in the MACD we are turning bearish on Ethereum having completed 5 wave while we trade below yesterdays high. We usually target the are of the previous wave (iv) so we expect to see at least a test of the green trendline below 3000.

Ethereum long term chart

Here I have copied a chart from Elliot wave international which I am unable to replicate so am using theirs. This shows the possible retracement levels on a logarithmic chart. IF we have seen the high in Etheurm then given the retracement levels and the fact we target the previous wave iv area we should see a sharp sell off in the coming weeks to the 1350/2080 area.