My last 2 posts on ETH and BTC illustrated a potential H&S pattern on both. Head and shoulders patterns aren't typically tradeable until we break out one way or another, as we saw. Both have done very different things. The one that formed on ETH was shakey, but I posted it because the one on BTC was solid and typically both pairs generally move together. ETH had a nice break out and move to the upside and I want to get some macro perspective on things and understand why ETH broke sooner but not BTC (BTC is looking like it could still break up right now) and where we go from here by diving into what ETH/BTC is doing. Lets take a look.
1. ETH/BTC has formed this HUGE wedge and is pushing up.
2. RSI is starting to reach a top, which could be an indicator that we will get a temporary pull back
3. MACD is turning positive.
Right now, we have some room to go until we hit this first resistance area at .074. With the way things are going, this could mean that ETH pushes past 575 and goes up to 600 and maybe higher.
Ultimately, the reason ETH pushed up and not BTC was because of this upward pressure. If ETH is leading the way, The real question is what does it do once it hits that resistance area? Does it revert down and retest that wedge or that support zone? Or does it continue higher and possible break it to the upside? The pattern that forms will be very telling for where we go from here.
Hope that helps, if it does please smash that like button to let me know.
-Sherem
1. ETH/BTC has formed this HUGE wedge and is pushing up.
2. RSI is starting to reach a top, which could be an indicator that we will get a temporary pull back
3. MACD is turning positive.
Right now, we have some room to go until we hit this first resistance area at .074. With the way things are going, this could mean that ETH pushes past 575 and goes up to 600 and maybe higher.
Ultimately, the reason ETH pushed up and not BTC was because of this upward pressure. If ETH is leading the way, The real question is what does it do once it hits that resistance area? Does it revert down and retest that wedge or that support zone? Or does it continue higher and possible break it to the upside? The pattern that forms will be very telling for where we go from here.
Hope that helps, if it does please smash that like button to let me know.
-Sherem
Trade closed: target reached:
If you are in this, take half out. Stop loss on the other half. It's starting to hit this resistance zone