On the right, we can also see how that small uptrend broke and at the moment we can see it is retesting it as resistance. There are 2 options with something like this:
1) The uptrend (blue line) broke but we will not see a big drop and instead seeing a form. So a drop to 260/265 could still be for the short term. plays a big role here. We can see a bit of increase when it drops, but should be like double the other drops.
2) The dropping on the left (which shows divergences) is the last high for the coming period. To get this confirmed we need to see a big sell candle form straight through the 260ish. So for the short term, the only real danger i see is this. For the rest i think it's best to assume that bulls are still in control.
We can see that the 250ish can also be like a backup for the ETH market. As you might remember from previous analysis, the 230 is still THE biggest between bull and bear trend (mid-term). The previous test of that level we could see that bears simply failed to show , so instead of a drop we have seen a counter move since. You can look back at one of my previous Bitcoin analysis to see what i had shown there. Where the got turned into a and so far that has played out.
Also good to keep an eye out on Bitcoin , we just had a 200 point bounce up from today's low, which is keeping the triangle alive. But if we do see it turn down again, and break today's low, i don't see another real until the 8800/8900. If that happens, the version becomes very likely and i think that ETH will break it's support as well. Think the Bitcoin price 8200/400, will be the same as the 230ish for ETH.
So in general think we can say is:
We either just continue the rally from current high prices, or we are going to make that big correction, to test the long term support levels and give foundation to this whole rally and continue with the bull market. Until this doesn't happen, to me it means that a 10/20% daily drop will keep looking around the corner, since we have not set a real foundation yet.
Short term for the bulls, the 272ish is the first step for the bulls.
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Now the confusing thing is, BTC looks weaker on the short term, while ETH looks like it might break this channel. The 266ish seems to be the first level of the bulls to break. Then the short term bearishness might be over.
The red zone on the left seems to be another resistance now. Think if the bull can break it, it will give the bull flag at least more chance of succeeding. Still all not very clear yet, because Bitcoin is showing a few different signs.
We're up 7.12% and have a stop loss set for the long trade to catch us and then we are going short. Thanks for the update and all you do man, love your ideas, they help a lot!