Yesterday we reviewed the bitcoin chart and possible scenarios, and just as we predicted, S&P 500 reached our first target on futures at 50 MA (4000p), bitcoin also showed a fall to the level of $19500, but a buyer appeared from there and we made a small short squeeze for the previous highs and collected stop-losses. While the negative scenario remains in place, signs of buying are starting to appear even earlier than we thought.
Let's move on to the Ethereum chart. Today it shows the largest increase among the top coins, which can also be a positive sign because other Ethereum based projects will follow it. But again, despite the engulfing (candle 1) we are still trading below the 50 MA and the seller's zone at the level of $1700, so I would not consider buying yet, since negative scenarios for bitcoin and ethereum are my priority. If we go to test Demand zone 1 again, then it will most likely be broken, which will open the way for us to the Demand zone 2. Ethereum is now showing the strongest momentum on the market, which raises doubt about updating low at $880 even if Bitcoin updates its low. On Ethereum, I advise you to watch longs after passing the Resistance 1 or even better fixing above the Resistance 2.
To be honest, when I will look for longs in the market, then I would take Ethereum as the first coin. Now there is a possibility of testing the $1600 level on Ethereum and then gonna watch the seller’s reaction, but the fact that we grew by 9% per day with one candle tells us that there are buyers in the $1360-1440 zone, because before that we needed 5 candles on the previous correction for 12% growth.
Let's move on to the Ethereum chart. Today it shows the largest increase among the top coins, which can also be a positive sign because other Ethereum based projects will follow it. But again, despite the engulfing (candle 1) we are still trading below the 50 MA and the seller's zone at the level of $1700, so I would not consider buying yet, since negative scenarios for bitcoin and ethereum are my priority. If we go to test Demand zone 1 again, then it will most likely be broken, which will open the way for us to the Demand zone 2. Ethereum is now showing the strongest momentum on the market, which raises doubt about updating low at $880 even if Bitcoin updates its low. On Ethereum, I advise you to watch longs after passing the Resistance 1 or even better fixing above the Resistance 2.
To be honest, when I will look for longs in the market, then I would take Ethereum as the first coin. Now there is a possibility of testing the $1600 level on Ethereum and then gonna watch the seller’s reaction, but the fact that we grew by 9% per day with one candle tells us that there are buyers in the $1360-1440 zone, because before that we needed 5 candles on the previous correction for 12% growth.