Bitcoin: Buy signal targeting 38600 and 40000/41000
Bitcoin trades sideways in what looks more like a consolidation of the bear trend than a reversal pattern. This means we are more likely to head lower eventually as we hold strong resistance at 35500/36000.
HOWEVER, a break above 36500 is a short-term buy signal so be ready to reverse out of any shorts & into longs.
Ripple managing a small recovery to strong resistance at 0.7100/7300. This is now key to direction. So bulls need a clear break above here for a short-term buy signal.
Ethereum has climbed steadily to strong resistance at 2300/2350 into the end of the week.
Daily analysis
Bitcoin shorts at very strong resistance at 35500/36000 target minor support at33500/33000. A break below 32500 this week sees 31700/500 before a retest of29000/28500. A double bottom here would help to turn the medium-term outlook positive, although this is looking increasingly unlikely now. Watch for support at27500/27000 on any further losses.
Strong resistance at 35500/36000 has been tested through most of Sunday. A break above 36500 however is a short-term buy signal targeting 38600 & 40000/41000, perhaps as far as resistance at 42400/800.
Ripple crawls higher towards the strong resistance at 0.7100/7300. Shorts here target0.6660/0.6560. ON further losses look for 0.6340/6260. A break below 0.6200 the targets 0.6000/5900 before a retest of 0.5200/5100. 2019 high is at 0.4940. A break below here is catastrophic for bulls & risks a slide to 0.4400/4350.
Shorts at strong resistance at 0.7100/7300 need stops above 0.7350. A break higher can target 0.7800, perhaps as far as 0.8000/8100.
Ethereum bounces back to strong resistance at 2300/2350. Shorts need stops above2400. A break higher is a buy signal targeting strong resistance at 2600/2650. Bulls then need a break above 2700 for a longer-term buy signal.
Holding strong resistance at 2300/2350 targets first support at 2200/2150. If this holds the downside bulls are in with a chance to start to take control long term. Longs need stops below 2050. A break below here is a sell signal targeting 1950 &probably 61.8% Fibonacci support at 1728
Chart
Author
Jason Sen
DayTradeIdeas.co.uk
Jason Sen began his career in the options pits on the trading floor of LIFFE in 1987 at the age of 19, making markets on his own account. In 2001 when the trading floor closed he successfully made the transition to day trading on computer screens.
