Bitcoin long Term Chart
Last time we said ‘ we should have 1 more sell off to complete 5 waves down’ we traded sharply higher causing me to reassess the count and call a low in place for what is either wave 1 of a larger correction or wave A . The bounce off the lows is testing the 61.8% level and may continue higher towards 101K but we are looking for lower in the short term whilst below the all time high.
Bitcoin Short Term Chart
Last time we said ‘I believe we have one more small push higher towards the 87750 level. where I would look to buy back and go long. Stop and reverse above 85K now.’ As you can see from the arrows I was looking for a small rally before the sell off but we traded much higher than expected. We are currently testing the 61.8% retracement level but breaking down the count we need to make one slight new high to complete 5 waves up in wave (c). Given the bearish divergence I don't expect it to go too much higher and will start to go short between 96k and 101k with stops above the all time at 110k for a push below 75k. On a risk reward basis this is worth the risk with a move above the highs signalling the bullish trend is underway.
Ethereum Long Term Chart
Now change to last weeks view ‘I will look to buy lower given we have yet to complete a 5 wave pattern to complete wave y’ We are looking for wave (iv) to complete. And are currently trading at 1675’ Like BTC we rallied more than expected in wave (iv) but we continue to look for a sell off to complete wave 2. Lets look at the short term to see if we are close to completing and if a good time to sell.
Ethereum Short Term Chart
Last time we said ‘it appears to me that we have just finished a corrective triangle for wave (x) that calls for another push higher to complete wave (iv)Look to sell at 1720 and again at 1820 with stops now above 1955.20. Looking for a push below the wave (iii) low at 1385.’ The rally reached 1858 so we are short and I am reducing the position looking for another push higher towards the 1960 level before the last leg lower. Move stops on shorts to 2350 with a move below 1385 the minimum target to the downside.
