Bitcoin: A break below 39000 is another important sell signal
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Bitcoin bounce from 400 pips above the only support for this week at the 500-day moving average at 39200/000 reaches as far as strong resistance at 44200/44400 with a high for the day exactly here.
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Ripple retesting & holding the 500-day moving average at 7300/7250 although we overran as far as 6966. The bounce reached strong resistance at 8071/8200 with a high for the day exactly here.
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Ethereum longs at mega important support at 3050/3000 work on the bounce to strong resistance at 3350/3400 for profit-taking.
Daily analysis
Bitcoin holding important support at the 500 day moving average at 39200/000 to hit strong resistance at 44200/44400. A high for the day here as we dip back to minor support at 42500 (& holding here too as I write) - below 42000 risks a retest of the 500 day moving average at 39600/400. A break below 39000 this time (I think it will happen eventually) is another important sell signal initially targeting 37800/750 & 36500/36000. Below 36000 can take prices as far as 31000.
A break above 44500 however targets 46500/47000, perhaps as far as very strong resistance at 48500/49000. Shorts need stops above 50000.
Ripple reached strong resistance at 8071/8200 & guess where the high for the day was? Minor support at 7750/7700 tested now as I write overnight. Further losses retest important support at 7350/7300. A break below this week's low at 6966 is the next sell signal initially targeting 6450/6400, perhaps as far as 5840/5800.
Holding minor support at 7750/00 allows a retest of strong resistance at 8071/8200. A break above 8300 is a short-term buy signal initially targeting 8600.
Ethereum longs at mega important support at 3050/3000 work o the bounce to strong resistance at 3350/3400 for profit-taking - a high for the day exactly here. A break higher however targets 3500/3550.
Important support at 3050/3000 - stop below 2900. However, a break lower is a very significant sell signal.
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.
