So we had a a pretty rough day yesterday, but this is what you signed up for trading this market. The movers stomped out some stops yesterday and while everyone was buys freaking out over a few % points the whales were busy collecting all their coins. You have to be ready for volatility like we saw yesterday, because your trading in a unregulated market, with straight killers.
COINBASE:ETHUSD was able to find support on the trend line and made a little bounce from there. Honestly I wouldn't be surprised if we continued consolidating until next week or the week after, once the whales have sucked up all the liquidity they will the price and then sit back and wait for the retail investors to FOMO in driving us to a Y2D high. I'll probably be setting my stop somewhere in the 220s
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If we can close the daily with some strength than this hammer candle will be confirmed which is a bullish sign showing that the bears weren't able to maintain the selling pressure downward
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Alight we broke out of the consolidation pattern and now as long as we can close out the day the pattern will be confirmed. Looking as the visible range we see that there really isn't much resistance in the way for when making our move up.
I re-drew the triangle, taking today's daily candle into account and you could argue, that the triangle still hasn't (clearly) broken (see here: tradingview.com/x/ZYKeGDGg/). Also, MACD, RSI and VOLUME show signs of weakness, which could lead to a breakdown of the triangle to the ~210 support, *maybe* the ~180 support, if we breakdown really violently.
But I wouldn't see this as a trend reversal, more like a healthy correction.
Your thoughts?
Yung_Crypt0
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@timn91, yeah the hourly didn't break out, but it didn't break out either! On the daily, a larger consolidation pattern seems to be in play. I'll probably just set some alerts, with no stops. As I still think we are just consolidating for another push. There is definitely a correction coming, but I think we make one more move up before that happens
timn91
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@Yung_Crypt0, I can see that. I'm leaning towards another push up, too I'll keep a close eye on the triangle(s) though (see here: tradingview.com/x/Sm8oGEuC/) and will probably enter with another long at around 238 or 230, depending on if we're moving inside a symmetrical triangle (dotted line) or descending triangle.
"There is definitely a correction coming, but I think we make one more move up before that happens": where do you see the TP for this eventual correction? I somewhat doubt that, even after this correction, we'll get another chance to enter long inside the 220-250 price range.
Very good idea, follow you for a long time and want to say that I really like your work, thank you!
Yung_Crypt0
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@BillCharison, Thank you! That coming from you is very humbling. You're work is top notch as well my friend
SpartaBTC
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timn91
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This triangle is definitely a "do or die scenario". If we break out downward I can see ETH retracing back to 200 or even 160, which I personally am hoping for, so I can double down on ETH :)
timn91
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@timn91, either way, I'll keep a very close eye on your chart.
I re-drew the triangle, taking today's daily candle into account and you could argue, that the triangle still hasn't (clearly) broken (see here: tradingview.com/x/ZYKeGDGg/).
Also, MACD, RSI and VOLUME show signs of weakness, which could lead to a breakdown of the triangle to the ~210 support, *maybe* the ~180 support, if we breakdown really violently.
But I wouldn't see this as a trend reversal, more like a healthy correction.
Your thoughts?