ETHBTC portends a pullback in the broader crypto market

TLDR: There is a high level of correlation in the market so if ETHBTC is red the broader market is likely red.


Analysis

• The black lines show a neckline to a head and shoulders that is very visible on lower time frames.
  
• The purple area shows an area where we could see the price stall and consolidate before we continue the downtrend. There are two main targets for a double top. One is the Hight of the top to the valley between the tops and the other is to give up all of the gains prior to the top. Here I expect we get overperformance. How far is a bit tricky because I don't know which of two bearish patterns is going to be controlling.
  
  Macro View
  Here are the two formations... One is a orange rising channel which may have us test the midline or support before breaking to the upside. Staying in the channel which concurs with the triangle support would be a very bullish way to have a pull back. A less bullish way to have a pull back would be for us to test the falling wedge as support after breaking out of the falling wedge mid last year.
  
  
  
  Here is an example of XRPUSD doing a vicious retest of support last winter.
  
  
  
  Here is XRPBTC having a few attempts at getting a wedge to perform.
  
  
  
  Conclusion
  Retesting wedge support is very normal and we have the structures on multiple time frames for a retest to occur. These ETHBTC do not exactly tell us what ETHUSD will do as it could be BTC outperforming eth to the upside or ETH outperforming BTC to the downside, or even worse for eth, BTC and ETH running in different directions. And as the TL:DR mentions, if ETHBTC is getting a pull back we can faily expect and protect ourselves against a broader market pullback and plan attempts on playing the reversal with a battle plan.

Comment:

Double top idea now invalidated.