Late yesterday, Bitcoin and Ethereum sold off and now are bouncing off support. The two charts below are the channels I am using to gauge whether the rally has ended. Both are 4-hour charts.
Both channels are must holds. Should the rally continue, I have been calling for $12,000 Bitcoin . Though the Bitcoin chart is a lot less clear.
Ethereum's chart, on the other is a lot more clear. A potential set up has been spotted with targets as high as $280. On the below we review Ethereum and momentum.
As it stands CMF remains in positive territory and there is a divergence since the price peak May 19. Despite this finding, momentum is not on the side of the bulls. Something tell me that the daily close today is critical for continued upside.
As a trader you take what the charts give you. If Bitcoin and Ethereum begin closing below the channel highlighted above, there has officially been a change in trend. For now my bias on this trade will remain until a clear change in the trend happens...Bias: Bullish