Sometimes it seems like reading charts is like tracking the weather. It seems much easier to track the course of a hurricane than it is to predict when one will start, when it’s quiet outside. Likewise, sideways movement is challenging not just because it’s so easy to lose money trading it, but because it’s hard to know which of the myriads of S/R will finally kick something off.
In our last update, we forecasted that ETH would likely begin a rally, and indeed that has happened. There is multiple resistance at lower levels of course, but the longer-term forecast is for ETH to go to the mid-$60s.
ETHXBT has rallied after clearing a second arc, as discussed in our last column. However, it is now sitting at resistance again. ETH seems highly likely to rally further, but XBT is the wildcard. We will look at Bitcoin shortly, but the spoiler is I would not hold this position right now, personally.
It was not all that surprising that litecoin found resistance where it did, but I was a bit surprised that it fell as hard as it did. I am still holding this asset, as it seems to still want to go up. But if $10 breaks, I fear that $8 could be in the cards.
As I have mentioned in the past 2 columns, Bitcoin is traversing an arc pair on the daily charts. It will soon hit the 2nd of the arc pair. I have been short-term bearish, but the asset has not fallen. I have given up my bearishness and taken a more neutral position. When the next arc is touched we will see what the market does. We won’t have to wait much longer.