Bitcoin: Longs need stops below 37200
|Bitcoin bottomed holding 500 pips from first resistance at 41500/42500, where a high for the day was expected.
Ripple we wrote: Expect strong resistance at 7670/7700.
As I write we topped at 7660. In severely overbought conditions I now think the bear trend will resume.
Ethereum has hit strong resistance at 2460/2500. I favour a move to the downside from here in severely overbought conditions.
Daily analysis
Bitcoin beat 34500 for a medium term buy signal initially targeting 36500/37000 & resistance at 41500/42500 where a high for the day was expected. We topped just 500 pips below. A break above 43000 targets 44500/44800.
I favour a move to the downside from resistance at 41500/42500 targeting support at 38200/37800. This should hold the downside initially, certainly throughout the morning. Longs need stops below 37200. A break lower is a sell signal targeting 36500/36000, perhaps as far as 35000 & 34500. Expect support at 32500/32000 but longs here could be risky in the bear trend.
Ripple is holding strong resistance at 7670/7700 to target 7300. Further losses test first support at 7100/7050 but longs could be risky. A break lower targets 6890, perhaps as far as minor support at 6730/00.
Expect strong resistance at 7670/7700. Bulls need to clear this for a medium term buy signal, initially targeting 8500/8700.
Ethereum just topped exactly at strong resistance at 2460/2500. A break higher today is a buy signal initially targeting 2700/2750.
Shorts at 2460/25 initially target 2300/2270. Further losses are certainly possible to 2220/00. A break below here is a sell signal targeting 2100/2050. This is the last line of defence for bulls – if this does not hold they have no chance of building a recovery.
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