Trend Analysis
The main view of this trade idea is on the 15-Min Chart. The cryptocurrency cross Ethereum/Bitcoin (ETH/XBT) is trending lower in the short term despite the recent short term bounce. Resistance was hit by the long term moving average MA. Expectations are for a leg lower, with the next level of support observed around 0.065. A negation of this view will be a sustained cross above 0.072.
Technical Indicators
ETH/XBT is currently below its long (200-MA), medium (100-MA) and short (50-MA) fractal moving averages, after hitting resistance from its long term MA. The MAs are trending lower with the long term MA above the medium and short term MAs and the medium term MA being above the short term MA. This is consistent with a continued downtrend. The RSI is also below 50 and the KST recently had a negative crossover, complementing the leg lower in the cryptocurrency cross.
Recommendation
The recommendation will be to go short at market, with a stop loss at 0.072 and a target of 0.064. This produces a risk/reward ratio of 2.24.
Disclaimer
The views expressed are mine and do not represent the views of my employers and business partners. Persons acting on these recommendations are doing so at their own risk. These recommendations are not a solicitation to buy or to sell but are for purely discussion purposes. Currently I have exposure to ETH/XBT.
The main view of this trade idea is on the 15-Min Chart. The cryptocurrency cross Ethereum/Bitcoin (ETH/XBT) is trending lower in the short term despite the recent short term bounce. Resistance was hit by the long term moving average MA. Expectations are for a leg lower, with the next level of support observed around 0.065. A negation of this view will be a sustained cross above 0.072.
Technical Indicators
ETH/XBT is currently below its long (200-MA), medium (100-MA) and short (50-MA) fractal moving averages, after hitting resistance from its long term MA. The MAs are trending lower with the long term MA above the medium and short term MAs and the medium term MA being above the short term MA. This is consistent with a continued downtrend. The RSI is also below 50 and the KST recently had a negative crossover, complementing the leg lower in the cryptocurrency cross.
Recommendation
The recommendation will be to go short at market, with a stop loss at 0.072 and a target of 0.064. This produces a risk/reward ratio of 2.24.
Disclaimer
The views expressed are mine and do not represent the views of my employers and business partners. Persons acting on these recommendations are doing so at their own risk. These recommendations are not a solicitation to buy or to sell but are for purely discussion purposes. Currently I have exposure to ETH/XBT.
Trade closed manually:
Change in trend in crypto cross. Exit and Monitor for new position.
