Bitcoin (BTC/XBT) & Ethereum (ETHUSDT/ETHBTC) Potential Breakout
Bitcoin (BTCUSDT)
After breaking out of the W bottom at 36.5K, Bitcoin rallied slightly before coming back to retest the neckline of the breakout. In fact, there was an hourly close below the neckline, suggesting a potential failure of the W bottom breakout, but price then quickly rallied above, bouncing off of the neckline and the 61.8 Fib. Price is now back at the 200MAs @ 37K on the hourly char. Bitcoin seems to also be in an ascending triangle, and on the upside we have the 38.5-39K zone, which is the confluence of the triangle top and the channel top as a potential area of resistance. On the downside, we have 35.5K, which is the confluence of the 61.8 Fib and the channel bottom
Ethereum (ETHUSDT)
After breaking out of the W bottom at 2450-2500, Ethereum had a nice rally before coming back to test the 200MAs. For the time being, the 200MAs have been flipped from resistance to support. If price can stay above the 200MAs and either move up or consolidate, there will be a good chance that Ethereum is gearing up for a major leg up. As mentioned in yesterday’s post, the key level to watch is 2900. A break above 2900 with strong volume would confirm the larger W bottom breakout pattern and give a potential target of 4000+. Of course, before reaching that target, we have the all-important golden pocket of 3350-3450 that needs to be cleared, but even a move to that zone would give a very profitable trade. On the downside, we have the 200MAs at 2550 as the first level of support.
Ethereum (ETHBTC)
After breaking out of the W bottom at 0.0685, ETHBTC had a nice run up to the golden pocket of 0.072-0.073. This zone has served as the main level of resistance since we bounced from the bottom of 0.055. Price has failed to break above that zone in 3 prior attempts, and is now in that zone once again. If price can finally break through this zone, ETHBTC will likely go on a massive run. Not only will price have cleared the golden pocket which has served as major resistance, it will also confirm the larger W bottom breakout pattern. This would give us a potential target of 0.09, which would be a new high for this bull market. Of course, we would want to make sure that the ETHUSDT chart is also confirming the move to give extra confidence. On the downside, we have support at the 200MAs at 0.07.
As always, I’m not a financial advisor, do your own research, and stay safe!
After breaking out of the W bottom at 36.5K, Bitcoin rallied slightly before coming back to retest the neckline of the breakout. In fact, there was an hourly close below the neckline, suggesting a potential failure of the W bottom breakout, but price then quickly rallied above, bouncing off of the neckline and the 61.8 Fib. Price is now back at the 200MAs @ 37K on the hourly char. Bitcoin seems to also be in an ascending triangle, and on the upside we have the 38.5-39K zone, which is the confluence of the triangle top and the channel top as a potential area of resistance. On the downside, we have 35.5K, which is the confluence of the 61.8 Fib and the channel bottom
Ethereum (ETHUSDT)
After breaking out of the W bottom at 2450-2500, Ethereum had a nice rally before coming back to test the 200MAs. For the time being, the 200MAs have been flipped from resistance to support. If price can stay above the 200MAs and either move up or consolidate, there will be a good chance that Ethereum is gearing up for a major leg up. As mentioned in yesterday’s post, the key level to watch is 2900. A break above 2900 with strong volume would confirm the larger W bottom breakout pattern and give a potential target of 4000+. Of course, before reaching that target, we have the all-important golden pocket of 3350-3450 that needs to be cleared, but even a move to that zone would give a very profitable trade. On the downside, we have the 200MAs at 2550 as the first level of support.
Ethereum (ETHBTC)
After breaking out of the W bottom at 0.0685, ETHBTC had a nice run up to the golden pocket of 0.072-0.073. This zone has served as the main level of resistance since we bounced from the bottom of 0.055. Price has failed to break above that zone in 3 prior attempts, and is now in that zone once again. If price can finally break through this zone, ETHBTC will likely go on a massive run. Not only will price have cleared the golden pocket which has served as major resistance, it will also confirm the larger W bottom breakout pattern. This would give us a potential target of 0.09, which would be a new high for this bull market. Of course, we would want to make sure that the ETHUSDT chart is also confirming the move to give extra confidence. On the downside, we have support at the 200MAs at 0.07.
As always, I’m not a financial advisor, do your own research, and stay safe!
