ETHBTC Cup & Handle Patterns (with a look at ETHUSD and BTCUSD)

ETHUSD hit its 2017 low in the first week of December and likewise hit its 2018 low in the first week of 2018 at almost the same level. After a bounce we formed a rough cup and handle pattern with what would become the 0.786 level became resistance as the 12H MACD had a cross and eventually achieved an impressive liftoff.
Currently it appears we have much the same pattern repeating, with the MACD having a bullish cross. We don’t line neatly up with fib retracement levels this time but we do appear to be consolidating between 0.382 and the 0.5 levels. Using the Volume profile we appear to be consolidating between the point of control established on the last leg of the downtrend at 0.031597 and the upper volume area.

We touched down on the POC around Christmas and aggressive buying prevented us from hitting the POC again on this retracement. Now on to BTCUSD

The chart below shows how I believe BTCUSD will form a long term falling wedge reversal structure made up of symmetrical triangle continuation patterns. The black triangle got us to target to create the second point of contact on the wedge and the blue triange just happens to have the right height and length to get us to a third point of contact with the falling wedge. I marked out the shorting zones before I noticed the triange, of course given the chance I will consider shorting the blue triangle into the wedge support. What does all that mean? BTCUSD will be trending sideways up to March.

ETHUSD had a strong uptrend coming out of a falling wedge and is now creating what I think is a rare Adam and Eve Continuation pattern. The price action is consolidating in a rounded bottom formation between the 0.618 and the 0.382 fib retracement levels and when that is done I expect the formation to execute the height of the Eve formation, or about $50. The price action lows are basically flat but the indicators hit lower lows, creating a form of hidden bullish divergence.

Entries into a ETHBTC long are probably best when BTCUSD is at the top of the blue continuation triangle and you can place a tight stop on the ETHBTC long there based off what you see also happening with ETHUSD. It is still possible that ETHUSD could re-test the 0.618 level as it forms its rounded bottom and so if BTCUSD goes up and ETHUSD goes down we could get funky behavior on ETHBTC.

Not financial Advice, so forth and so on.

Trade closed: stop reached