Updates on Bitcoin and Ethereum, bullish and bearish scenarios.
Today I will analyze the two most relevant assets in the crypto world. Bitcoin and Ethereum.
Let's start with the Bitcoin chart.
When analyzing a chart, the main thing I look at is answering the question, "What are the main levels on the chart?" I try to answer this first because the price tends to move from one level to another in the same hierarchy, making retracements or corrections on minor levels. Generally speaking, this rule tends to work pretty well. The answer to this is the major support and resistance levels; the price has been inside that range since January 2021.
For the last 2 to 3 months, the price has been moving sideways between 46K and 33K, and now we are observing bullish pressure that is interesting to analyze. So what am I expecting from here?
From a textbook perspective, the price should reach the major support zone before starting new long-term bullish movements (Following the principle that the price moves from level to level). However, as you already know, the market gives a .... about what the price "should" do. That's why it is also important to understand what may happen if the price does not reach the support level. IF that's the case, I think we may observe a movement towards the previous major resistance zone, with corrections happening around 52.500, where we had a minor resistance level in the past. Alright, this is my analysis.
Now, what about the trading opportunities I'm waiting for. Regarding setups, I will only develop setups in two scenarios. Scenario 1: The price reaches the major support zone; if that happens, I will be allowed to define bullish filters and trade towards the Major resistance zone or beyond. Scenario 2: IF the price makes a new ATH, I will wait for a corrective pattern, and I will trade, assuming that a new long-term bull run will come.
What if nothing of this happens? I don't trade.
Now let's see an analysis on Ethereum to finish today´s post:
Here I will be using the exact same logic as BTC. So no further explanation is required
Thanks for reading, feel free to share you view and charts on the comments.
Let's start with the Bitcoin chart.
When analyzing a chart, the main thing I look at is answering the question, "What are the main levels on the chart?" I try to answer this first because the price tends to move from one level to another in the same hierarchy, making retracements or corrections on minor levels. Generally speaking, this rule tends to work pretty well. The answer to this is the major support and resistance levels; the price has been inside that range since January 2021.
For the last 2 to 3 months, the price has been moving sideways between 46K and 33K, and now we are observing bullish pressure that is interesting to analyze. So what am I expecting from here?
From a textbook perspective, the price should reach the major support zone before starting new long-term bullish movements (Following the principle that the price moves from level to level). However, as you already know, the market gives a .... about what the price "should" do. That's why it is also important to understand what may happen if the price does not reach the support level. IF that's the case, I think we may observe a movement towards the previous major resistance zone, with corrections happening around 52.500, where we had a minor resistance level in the past. Alright, this is my analysis.
Now, what about the trading opportunities I'm waiting for. Regarding setups, I will only develop setups in two scenarios. Scenario 1: The price reaches the major support zone; if that happens, I will be allowed to define bullish filters and trade towards the Major resistance zone or beyond. Scenario 2: IF the price makes a new ATH, I will wait for a corrective pattern, and I will trade, assuming that a new long-term bull run will come.
What if nothing of this happens? I don't trade.
Now let's see an analysis on Ethereum to finish today´s post:
Here I will be using the exact same logic as BTC. So no further explanation is required
Thanks for reading, feel free to share you view and charts on the comments.