Based on the channel you can see in the chart and fibs, I had this idea from last few weeks and it was one of the reasons I was catching the falling knives few days back when ETHBTC had dropped below 0.08, this chart needs no explanation and its clear based on what I have drawn that squiggle
Target 1: 1.618 fib for long position
Target 2: Short it to 0.382 or 0.5 fib (last yellow fib retracement is based on assumption that it goes to 1.618 blue fib retracement and starts dumping
Target 3: Again long it to near the top of the channel for a new All Time High
Target 4: Short it until it completes its downtrend as per market cycles
i.imgur.com/A7Okj4t.png - This is when I had shared in a telegram group about going long on ETHBTC, price was ~ 0.077 on bitmex futures contracts (Although I had closed that long position before sharing this idea as I had to use those profits to add to my BTC long position)
Reasons for buying the dip near or below 0.08:
it was near 0.5 fib, RSI on daily tf indicated oversold, it was TD9(reversal) candle, price was near or above 200 EMA or 200 MA
Price had gone below kijun on daily tf but I was hopeful it wont stay there for long and can even bounce from the cloud, its above kijun now which is a sign of good recovery as far as the trend is concerned
There was also a bullish-tk cross followed by a kumo breakout but it dipped from 0.086-0.087 because there was a bear-div as shown in the chart
Right now the price has entered the 4h cloud and there can a bull-tk cross in next few days, can do Edge2Edge on 4h, there will be resistance near the edge of the cloud ~ 0.09-0.092
RSI bouncing from oversold region and macd crossing above signal on 4h tf was also an indication of reversal few days back
Few people might argue that how can BTCUSD and ETHBTC rise together so let me share correlation chart and you can observe they had a positive correlation coefficient most of the time from May to September in 2017
Everything said above are my thoughts and analysis for ETHBTC, nothing is a financial advice.
Target 1: 1.618 fib for long position
Target 2: Short it to 0.382 or 0.5 fib (last yellow fib retracement is based on assumption that it goes to 1.618 blue fib retracement and starts dumping
Target 3: Again long it to near the top of the channel for a new All Time High
Target 4: Short it until it completes its downtrend as per market cycles
i.imgur.com/A7Okj4t.png - This is when I had shared in a telegram group about going long on ETHBTC, price was ~ 0.077 on bitmex futures contracts (Although I had closed that long position before sharing this idea as I had to use those profits to add to my BTC long position)
Reasons for buying the dip near or below 0.08:
it was near 0.5 fib, RSI on daily tf indicated oversold, it was TD9(reversal) candle, price was near or above 200 EMA or 200 MA
Price had gone below kijun on daily tf but I was hopeful it wont stay there for long and can even bounce from the cloud, its above kijun now which is a sign of good recovery as far as the trend is concerned
There was also a bullish-tk cross followed by a kumo breakout but it dipped from 0.086-0.087 because there was a bear-div as shown in the chart
Right now the price has entered the 4h cloud and there can a bull-tk cross in next few days, can do Edge2Edge on 4h, there will be resistance near the edge of the cloud ~ 0.09-0.092
RSI bouncing from oversold region and macd crossing above signal on 4h tf was also an indication of reversal few days back
Few people might argue that how can BTCUSD and ETHBTC rise together so let me share correlation chart and you can observe they had a positive correlation coefficient most of the time from May to September in 2017
Everything said above are my thoughts and analysis for ETHBTC, nothing is a financial advice.
Comment:
Sorry I marked the second point "B" incorrect in the main chart above, it should be near 1.618 fib