I always check several pairs and look for correlation and many times when BTC doesn't show a clean pattern, I can find it in ETH or LTC.
The whole crypto scene is watching BTC ranging in a certain zone and we see predictions to both sides of the charts. When checking BTC chart I do see a potential break out to the upside but I will turn once we crack $8.500
On the ETH charts however, I can see very clearly which are continuation patterns. I see a clear reversal, impulsive move to the upside, followed by a correction.
I would expect this correction to be in 3 legs, but could also turn in a more complex structure and forming a 5 legs cycle.
Indicators are also showing over a longer period and strengthen my ideas about a break out. In that case, that won't be only for ETH but I expect for the majority of all crypto pairs.
How to trade? Wait for the break out, we already saw a trial yesterday but I do expect a violent move.
I'm alreayd long ETHUSD with a SL on entry as I expected the break out to be happening yesterday. Many pairs got rejected at trendline or fell back in their patterns immediately, but I still do expect the move up as current pull backs dont look like aggresive moves to the downside. If we do see 1 more move to the bottom of the , one could go long on a good bounce from the bottom of the .
A safer play is to wait for the break out as this is likely to play out, but crypto never gives you a guarantee ;-)
If we do get a bounce here, we may expect a break out of the pennant to the upside
As long as we can stay above the pennant, we're good