After forming a second short term top on Sunday, BTC retraced yesterday before finding support at the $8640 level as well as the medium term moving average (green line). The trading range has been narrow, between $8300 and $9000. Following the invalidation of the head and shoulders pattern, as a result of the right shoulder not forming, I am looking for a new pattern formation. We can see two distinct short-term tops have formed, indicating that we might be seeing a double top. For this pattern to be invalidated we would need to see a higher high form, and hopefully a retest of the $9300 resistance level.
Price action has been trading above the moving averages for four days now, which is bullish, but volume has remained rather flat. Another bullish indicator is the MacD which has turned and indicates a buy signal on the 1-day chart (not shown). This could mean that we are seeing a change in the long-term trend and may see a return to upwards price action.
In the altcoin market, I have been following Bitcoin Cash, Qtum and Ethereum Classic since the 9th of Feb.
Yesterday I pointed out that Qtum/BTC had continued to trade sideways with very high levels of volatility and large spikes in volume. We could see a symmetrical triangle forming, with price approaching the trend line. If we see a breakout to the upside, the first resistance level could be found at 0.0034 BTC. Over the course of yesterday we saw price reach the upwards trend line and break through the resistance zone. The next level of resistance to expect is at the downwards trend line of the triangle. If Qtum manages to break through this, then the next resistance level is at 0.00403 BTC.
Yesterday, I pointed out that Bitcoin Cash has continued on the short-term downtrend. Finding support at 0.141 BTC. This support level held but resistance was found at the downwards trendline, which was tested twice. If BCH can break through this trendline and close above it, then we could see a resumption of the up trend. Currently my outlook is bearish.
Yesterday I pointed out that Ethereum Classic had a big day the day before, climbing rapidly all the way up to the resistance level I defined over the last two analyses. I recommended taking some profits at that point, as we could see a drop off based on this profit taking, or consolidation then another up move. Furthermore, I pointed out that ETC could gain a lot of attention and volume as traders jump on this. This is precisely what happened. Yesterday ETC had a massive day, breaking through resistance and moving strongly higher. The next resistance zone is 0.0041 BTC. Volume is high on this coin at the moment. Definitely one to keep an eye on. If you are in this trade, then enjoy the ride and protect your profits.
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Ricki specializes in the field of wealth management with a focus on holistic financial planning. He has a keen interest in the investment fields of property, technology, precious metals and cryptocurrencies. Ricki also holds a Masters degree in Science from the University of Stellenbosch.
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