ETHBTC shows a giant wedge started 1year ago with the cross of the SMA200.
In this chart you can see how long and intensive the bull and bear markets were after important crossovers with the SMA200 (marked with the red bubbles).
If ETHBTC is following the pattern, we could see another bear market til mid of april.
How to trade this?
Obviously grabing ETH at the reversal (R) and selling at another reversal would be perfect. How could we spot them? -> MACD (and surely other indicators) are announcing the Reversal with a divergence (blue lines):
Reversal 1: Chart was going down steadily, but the MACD hold its level and didn't go any lower. Perfect Buy Opportunity: Bullish MACD cross after 12th of December.
Reversal 2: Another divergence as the chart was going up while the MACD even got lower highs. Sell at bearish crossover 2nd February.
And now?
Wait for another divergence at MACD. The Chart Momentum and MACD both going down at this moment. Whenever the MACD is showing positive momentum again while the Chart isn't a reversal may happen. Buy opportunity after said divergence is a bullish crossover again.
Not a financial advice, feel free to AMA for both educational and analytical purpose (PM).
In this chart you can see how long and intensive the bull and bear markets were after important crossovers with the SMA200 (marked with the red bubbles).
If ETHBTC is following the pattern, we could see another bear market til mid of april.
How to trade this?
Obviously grabing ETH at the reversal (R) and selling at another reversal would be perfect. How could we spot them? -> MACD (and surely other indicators) are announcing the Reversal with a divergence (blue lines):
Reversal 1: Chart was going down steadily, but the MACD hold its level and didn't go any lower. Perfect Buy Opportunity: Bullish MACD cross after 12th of December.
Reversal 2: Another divergence as the chart was going up while the MACD even got lower highs. Sell at bearish crossover 2nd February.
And now?
Wait for another divergence at MACD. The Chart Momentum and MACD both going down at this moment. Whenever the MACD is showing positive momentum again while the Chart isn't a reversal may happen. Buy opportunity after said divergence is a bullish crossover again.
Not a financial advice, feel free to AMA for both educational and analytical purpose (PM).