It has since seen a recovery into the $200 range and hovered right around there. Scrolling out to the 4h and 1D timeframes you see signs of a divergence and potential bull-trend forming.
Looking @ the 4h, we see showing , increasing buy pressure and a with a pretty cut and clear example of an . When the neckline was broken we had a large breakout from $205 all the way to $235.
This could also be the start of a bull-flag , with the breakout to $235 forming the flag-pole and this current retrace and consolidation @ $215-225 forming the flag portion. To confirm this, we look for a bounce off of $210-220 area with a clear confirmation of breakout above $235.
Riskier traders can look to open early long positions between $210-220 for larger returns, or more risk averse traders can wait for the confirmation signal of the $235 breakout before opening a safer long position. I would place stop losses around 205 or just below 200 as that should be a strong longer term support below the neckline breakout.
Our first wave up has begun! The red trendlines extend from the July 18th high of $270 on Kraken to the last high of $235. This is the key level we are looking to touch (and eventually break). My first target will be looking to exit around $233 with a stop at or below $215. If that trade complete successfully I will be looking to reload for another leg up.