I wrote in my previous reports that the recent short squeeze in these markets could be the beginning of a broader move higher. The general price area of these markets, especially BTC , present reward/risk scenarios that are skewed toward the side.
And part of the motivation that can help these markets along can come from a weakening Dollar. I published an article earlier on S.C. that explored this relationship further.
At this point, ETH as well as BTC are facing the first obstacle. The mid 440's is where the is located as well as the lower boundary of the broad 544 to 464 (.618 area of recent structure). If price breaks back below the low 440s, it will be generating a sell trigger and can lead to a retest of the 400 low.
If 400 is taken out, 392 is the next reversal zone boundary relative to the 404 low. That is the location to look for reversal candles like a .
A close below 392 opens the possibility for the test of 374 which would be a sign to say the least. As S.C., we are anticipating the higher low scenario because of the magnitude of the initial spike on Friday.
In summary, if the higher low can materialize, it would justify a swing trade long idea (which will be shared with followers on S.C. if we take it). A push off a higher low can take price back into the low 500's at least.
If price action stays tight, it can also form a shallow higher low and squeeze earlier than expected. This would be a higher risk trade because of the general lack of follow through and obstacles still in play. In this scenario, we will wait it out until the is at least cleared before considering such aggressive setups.
You will be in the game longer if your biggest mistakes are missing trades, rather than forcing trades. Missing a trade does not drain your capital, while forced trades drain it quickly. Just something to think about.
I follow 27 authors... and you are ONE of three... that publishes the trends lines, supports, resistances and stops in either direction.
You also stated the facts about the TA, hinted at market sentiment on shorts... separating your own thoughts.To me, that's a perfect forecast.
My own forecasts are not as good as yours, but I have been forecasting this price level for two solid weeks. I will be relieved that if the price does settle lower, that I would be spot on (to the benefit of my own followers.)
Please keep the excellent reporting.. (I day trade ETHER) and watch BTC like a hawk as well.