Hello traders,
This weekend in cryptocurrency space is a little bit choppy, as we don't see clear direction in Bitcoin. Some alts are pumping really hard, but this usually happens when Bitcoin stabilizes at specific price.
Looking at weekly chart for Ethereum, after double top formation 3-4 weeks ago, we are starting to see beautiful tightening equilibrium is forming and we should expect a breakout in next 2-3 weeks. We saw shooting star doji formed 3 weeks ago. This doji usually present itself as a sign of a short term correction, but we did not see significant follow through which indicates some bullish sentiment.
However what concerns me the most is the imminent bearish crossover in stoch RSI. Historically, when we see bearish crossover we usually have major correction. I indicated previous crossover in the chart just for the reference. Does this mean that the bear market continues? Not necessarily. If we play in bullish scenario, what we need to see is short term correction, probably down to $100-$120 just to cool off stoch RSI, followed by massive bullish breakout up to $250 (bullish crossover), then correction for few weeks (indicated in red).
My sentiment in next few weeks is leaning toward bearish side, because I feel like bulls are just desperately trying to make plays, but bears are doing great job denying those moves. However, my bearish view will be invalidated if Ethereum goes above $160.
Happy trading!
This weekend in cryptocurrency space is a little bit choppy, as we don't see clear direction in Bitcoin. Some alts are pumping really hard, but this usually happens when Bitcoin stabilizes at specific price.
Looking at weekly chart for Ethereum, after double top formation 3-4 weeks ago, we are starting to see beautiful tightening equilibrium is forming and we should expect a breakout in next 2-3 weeks. We saw shooting star doji formed 3 weeks ago. This doji usually present itself as a sign of a short term correction, but we did not see significant follow through which indicates some bullish sentiment.
However what concerns me the most is the imminent bearish crossover in stoch RSI. Historically, when we see bearish crossover we usually have major correction. I indicated previous crossover in the chart just for the reference. Does this mean that the bear market continues? Not necessarily. If we play in bullish scenario, what we need to see is short term correction, probably down to $100-$120 just to cool off stoch RSI, followed by massive bullish breakout up to $250 (bullish crossover), then correction for few weeks (indicated in red).
My sentiment in next few weeks is leaning toward bearish side, because I feel like bulls are just desperately trying to make plays, but bears are doing great job denying those moves. However, my bearish view will be invalidated if Ethereum goes above $160.
Happy trading!