The Bears are Dead
I titled this the bears are dead because it is pretty much what will happen if the scenario takes place. All hopes for a crypto dip will die. All hopes that fundamentals will take hold of the stock market will disappear. That is exactly what they want to happen. When the narrative dies so will the rally. Below is the Ethereum chart I posted this morning on twitter .
As you'll see on this post I am not using indicators. Using price and classical charting methods to make my calls. What I was calling for this morning was a top reversal and another weekend sell off. Not that I was wrong, I did say it was possible. However, I am beginning to like the side of the trade. See below.
I honestly did not see this coming. It makes perfect sense though. The stock market has been strong throughout the week after opening on a large gap up. Today the market closed in positive territory and while the SPX and NDX had daily reversal candle closes off support. So, is this reversal on the Ethereum chart real? We will not know for certain until we get a clean breakout. However, with a breakout we could easily see $300 reached.
Use the channel I have drawn above as a potential stop. The top of the channel should be used as resistance if price were to exceed the $300 price target. As it stands...Bias: and BTFD.
How About the King?
So if Ethereum is how is the King of Crypto holding up? You guessed right. Its holding up pretty well. See the chart below.
If Ethereum does breakout and Bitcoin continues to consolidate into an the high target is approximately $12,000. Conveniently putting Bitcoin at the high of the weekly candle close from last year. This will serve as STRONG resistance (see resistance #2).
As long as the stock markets continues to show strength so will crypto. It is the current trend and you know the saying...the trend is your friend. Bias: Bullish.
I hope you all have a great long weekend! Happy trading!