As much as we like these assets cannot move in the same direction eternally and based on cryptos annoying habit of having tweezer or bullish engulfing candlesticks bottoms I need to figure out where to take some profits. The major level of significance for over the last year is boldly in orange. The last two times we met that level as resistance we bounced down about 66% one time and about 50% the second time. This current downtrend appears to have a lot of falling support and so I am looking to close my shorts within this purple box. There is a chance that we will break through support so the other side might have some more orders to go short depending on what I see.
I am primarily shorting ETHUSD right now based on what I am seeing from the ETHBTC pairing. We see that ETHBTC is battering against a long term key level (again in bold orange) after it just fell out of a consolidation pattern (in bold blue). I hope to see ETHUSD fall against BTCUSD 30-60% before this is all done based on what we saw in the green and blue boxes.
The price action of ETHBTC is being pressed down by the CM_Ultimate, which remains red. The green circles show the RSI has plenty of area to go back down and the Hull MACD has a very bearish formation. The MACD by itself is somewhat ambiguous as we just had a bullish crossover but given the total context I suspect we will see a bearish cross over soon.
I won’t be trading the ETHBTC pair itself because I expect both coins are both going to be moving the same direction. The only time I plan on trading ETHBTC is when the coins are moving in opposite directions, like after BTCUSD popped and then ETHUSD pumped, then when it popped XRPUSD pumped. And I don’t see a scenario like that playing itself out until next year at the earliest. And if BTCUSD continues to fall faster than ETHUSD then I just make a little less money.
And finally since ETHUSD and ETHTBC are both fighting key levels I do expect things to get a little choppy around here before we impulse one direction or the other.
I am primarily shorting ETHUSD right now based on what I am seeing from the ETHBTC pairing. We see that ETHBTC is battering against a long term key level (again in bold orange) after it just fell out of a consolidation pattern (in bold blue). I hope to see ETHUSD fall against BTCUSD 30-60% before this is all done based on what we saw in the green and blue boxes.
I won’t be trading the ETHBTC pair itself because I expect both coins are both going to be moving the same direction. The only time I plan on trading ETHBTC is when the coins are moving in opposite directions, like after BTCUSD popped and then ETHUSD pumped, then when it popped XRPUSD pumped. And I don’t see a scenario like that playing itself out until next year at the earliest. And if BTCUSD continues to fall faster than ETHUSD then I just make a little less money.
And finally since ETHUSD and ETHTBC are both fighting key levels I do expect things to get a little choppy around here before we impulse one direction or the other.
Trade closed manually:
Due to reasons in my latest post I closed this trade manually.
And I promise every Floridian that you will all be rich... because we're gonna print some more money! Why didn't anybody ever think of this before?
~Nathan Explosion
~Nathan Explosion