After Massive Crypto Rally, Predicted Price Action Ahead
Whew – there have been some monster gains today. Altcoins have seen double digit % gains, even Ethereum and EOS have gotten double digit percent gains with the later moving over +20%. But predicting and forecasting doesn’t stop after a bull move – its important to predict future pullback zones and then the price targets after the pullbacks. That is what I am going over today.
From Friday, February 15th to Monday the 18th, Bitcoin has moved and impressive +10.80%. At the time of writing this article, Bitcoin was settling just below a key and predictable resistance zone. At the 3861.93 value area is the 45-degree angle and the 0.618 Fibonacci arc. Additionally, the December 2018 opening price of 3944.69 is just above this zone. This confluence zone is a very tough nut for Bitcoin to crack, but it is important that we got there. Traders should also observe the power and strength behind Bitcoin’s move through the prior Fibonacci levels of the 50% and the 38.2% levels. The next predictive move here is a pullback down to the 3775 value area before breaking above the 45-degree angle and reacting, bullishly, to the time pivot on the 22nd. Predicted price target after the pullback is the 4060 value area.
Predicting the next move for Ethereum presents a similar setup – not surprising since Ethereum and Bitcoin basically move in tandem. Ethereum appears to halted (currently) against a key 1×5 angle, which is also close to the current 0.618 Fibonacci arc. I would anticipate that price pullback down the prior 50% Fibonacci level at 126.09 before responding off of the confluence zone of the 0.618 Fibonacci arc, 50% Fibonnacci level and the time pivot on the 25th of February. Certainly a move before this date is probable, especially given the move during the appearance of a Full Moon. Predicted price target after the pullback is the 1/8th Major Harmonic at 181.38.
If there is one important cryptocurrency that has experienced a more meteoric rise than all of its peers, it’s EOS. EOS as risen as much as a staggering +21% during Monday’s trade. The move is certainly a powerful one. The 1/8th Major Harmonic rests at 3.2537. Any Major Harmonic price level is one of the hardest for price to break above or below on a chart. Additionally, one can think of Major Harmonic price levels as a price level that is most important when viewed against a longer term chart such as a weekly or monthly chart. If we take a look at the weekly chart of EOS, we can see that prices first trading entirely below the 1/8th Major Harmonic, on a weekly basis, during the first week of December 2018. Price then consolidated until today, where price broke above that key price level. The current weekly candlestick for EOS has a few more hours to close, but if EOS does close above the 3.25 value area, then price has a strong base for a new bullish drive. Already, today, EOS has made the highest high of the past 13-weeks.
Price has found some resistance against a key Fibonacci arc and is having difficult move above that level. However, there does not appear to be any strong urge to sell EOS off from this level. Predictably, a return to test 1/8th Major Harmonic would be very appropriate and should be a move bulls would want to see. It is very important that some honesty and integrity of today’s move be confirmed by a test of the 3.25 value area as support. Predicated price level after the pullback would be a retest of the 3.50 level and then a very fast move to 4.00. I would anticipate and predict a sustained bullish move from now until the next major time pivot on March 31st.