Very Important ! Major Move to ETH / BTC in Progress !
The cryptocurrency Ethereum has been on a tear as of late vs. it's USD pair, but not sufficient to overcome the move in the BTC / USD pairing.
Put more simply - for the past few weeks you would have had greater USD returns by holding 100% BTC versus 100% ETH.
Our analysis from last month was correct in that a BIG MOVE was coming, although we could not say whether it was going to break UP or DOWN. Link to that analysis attached below !
Clearly the ETH/BTC pair broke DOWN around this time last month. This is about to change and I believe in a BIG WAY.
The attached chart shows the ETH / BTC chart on a daily basis. I have found that there are three factors for us to consider in the ETH / BTC pairing:
1) RSI should not be overbought NOR oversold and preferably between 40 and 65. Yes ! Today we are at 50.03.
2) Current price being above the 12 day Exponential Moving Average (EMA) on a daily basis. Yes ! (although those more risk averse should wait for a close above it)
3) TTM Squeeze - are we about to flip long ? Yes !
Recommend BUY on a shallow pullback (watch 4HR and 1HR charts).
An AGGRESSIVE STOP would be at the most recent daily low at 0.026291.
A CONSERVATIVE STOP would be at the trendline identified on the weekly chart (linked below) at 0.027750.
A GOOD FIRST TARGET would be the 50% Fibonacci retracement (0.033437) although I think it more likely than not that it retraces the entire move in the coming weeks, back to 0.04 or thereabouts.
Put more simply - for the past few weeks you would have had greater USD returns by holding 100% BTC versus 100% ETH.
Our analysis from last month was correct in that a BIG MOVE was coming, although we could not say whether it was going to break UP or DOWN. Link to that analysis attached below !
Clearly the ETH/BTC pair broke DOWN around this time last month. This is about to change and I believe in a BIG WAY.
The attached chart shows the ETH / BTC chart on a daily basis. I have found that there are three factors for us to consider in the ETH / BTC pairing:
1) RSI should not be overbought NOR oversold and preferably between 40 and 65. Yes ! Today we are at 50.03.
2) Current price being above the 12 day Exponential Moving Average (EMA) on a daily basis. Yes ! (although those more risk averse should wait for a close above it)
3) TTM Squeeze - are we about to flip long ? Yes !
Recommend BUY on a shallow pullback (watch 4HR and 1HR charts).
An AGGRESSIVE STOP would be at the most recent daily low at 0.026291.
A CONSERVATIVE STOP would be at the trendline identified on the weekly chart (linked below) at 0.027750.
A GOOD FIRST TARGET would be the 50% Fibonacci retracement (0.033437) although I think it more likely than not that it retraces the entire move in the coming weeks, back to 0.04 or thereabouts.
Trade active:
Well, well, well ......
Many of you ETH haters out there have been proven wrong once again. BTC is great - no question. But we also need to put our biases aside when we are looking to make more money in USD, ETH or BTC terms.
Here we are - merely two days later - and we can see that ETH has begun to dramatically outperform BTC. We are nearing our first target @0.033437. Closing the entire position will net you a nice profit of 15%, over just three days.
I am expecting will continue over the next few weeks. I do expect that we will consolidate a bit around the 0.033437 level before heading higher to test the most recent high around 0.040 BTC.
Personally:
I will close 33% of the position @ 0.033437 BTC
The next 33% at 0.037525 BTC
The final 34% I will close at 0.0405 BTC
Stop for entire position is the prior day's close price (today @ 0.0311)
Many of you ETH haters out there have been proven wrong once again. BTC is great - no question. But we also need to put our biases aside when we are looking to make more money in USD, ETH or BTC terms.
Here we are - merely two days later - and we can see that ETH has begun to dramatically outperform BTC. We are nearing our first target @0.033437. Closing the entire position will net you a nice profit of 15%, over just three days.
I am expecting will continue over the next few weeks. I do expect that we will consolidate a bit around the 0.033437 level before heading higher to test the most recent high around 0.040 BTC.
Personally:
I will close 33% of the position @ 0.033437 BTC
The next 33% at 0.037525 BTC
The final 34% I will close at 0.0405 BTC
Stop for entire position is the prior day's close price (today @ 0.0311)
