Red_Ben
Long

Bullish Divergence on ETH -Not Too Late To Get Long

COINBASE:ETHUSD   Ethereum / U.S. Dollar
Crypto continues to put in bullish divergences on pullbacks. The exact entry/stop are not that critical here. Just a matter of whether you can get in low enough to get good odds to pay if the bullish divergence on the 4hr + charts continue to play out. An hourly or higher close above 258 or any break above 271.50 on ETH is where we can expect things to get back to the regular scheduled buy program, but unless you see ETH rocketing through 300-305 with ease, it's hard to get odds that high.
Keep in mind we did have bearish divergence as well as a ADX - DI trend change warning sign on the 4hr, so if this trade doesn't work and ETH starts closing candles below the 220 mark or so (previous support from an earlier pullback), it may be time to consider getting bearish . But until that happens, it's BTD expecting to keep trapping new shorts. ETH made a higher low on the 4hr on this pullback, so I like it here. LTC continuing to close consecutive 4hr+ candles above 100 is also bullish .

As far as considering the other direction, if BTC loses 7500, we should see 7k rather quickly. There are bearish trade setups possible shorter term, but every time we bounce makes breaching 6k and below in the near future less likely. I'm a buyer again around 6400 at least once if things get real nasty. I also see XRP $0.38 - $0.40 absolutely buyable. If you MUST short, don't hold past 8480 or so IMHO. BTC breaking above 8500 again could be rather explosive.
Comment: Watching action closely here, a healthy pullback DOES make sense at any time. Tight stop, buy back a bit lower if it loses the previous low. I don't feel the need to hold all the way down to 150. Let that get worked out then buy back in when it settles.
Trade closed: target reached: Trailed out, as expected. Watch for short-term bear and long-term bull entries using fibs + divergences. Take profit fast on the short, hold the long for a while trailing stop, rinse, repeat.
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