ETH/BTC has been in a solid bull trend since late February. The trend beginning in February was broken on 21 June, as visible by the arrow on the following chart:
Adjusting for the break in trend, I have created a second pitchfork, which also appears on the above chart. That is the trend beginning on 9/5/2017, with the reversal on 12/6/2017. A candle is forming outside of the second pitchfork, demonstrating a break from this trend. The trend is now bearish. The following chart shows a zoomed version of the previous chart, to demonstrate the third pitchfork:
which is bearish, and on the trend beginning 29/6/2017. The third pitchfork was made by assuming that sideways movements from 12/6/2017 were stopped by the bear trend on 20/6/2017. The trend then reversed on 26/6/2017 with a bounce, and has since reversed again on 29/6/2017. The upper levels of the pitchfork were tested, and the price is now beginning to test the band second from the top. This appears to support the view that ETH/BTC is in a bear trend to below .103. The RSI support this: According to divergence theory, the fact that the RSI peaks and troughs are in line with the price directions indicates that the current trend (bearish) has not been reversed. We are going to see sub .103 within the next 6 hours:
I am writing this down to serve as a test for this prediction.
I am writing this down to serve as a test for this prediction.