Bitcoin and Ethereum trade ideas going into the weekend
At the time of writing this article (1014 CST), both Bitcoin and Ethereum are near some important levels. Let’s look at these possible opportunities going into the weekend.
1. The diagonal green line (right above the number 1) is a 45-degree angle, one of the most important angles in any instrument. It has been acting as a strong support area when price gets close to it, so be on the look out whenever price is near this level. The 45-degree angle is the single hardest line to cross.
2. The yellow shaded area represents a flat top triangle. Observe how as price and time continue to proceed and how the range between price and the 45-degree angle decreases. Price is ping-ponging at these levels.
3. This thick, dark horizontal line represents our current resistance area. But I want you to look further tot he right if your chart and see the next vertical line (on the 17th), the light green line. This is a Fibonacci time cycle ending and beginning, which is right near the start of a new lunar phase (which is on Monday). There is a strong confluence of time, price, and momentum here. Given Bitcoins behavior over the year, we should expect a dramatic breakout from this level between now and Monday.
1. If you remember reading some of my Ethereum analysis from weeks past, you will observe that this area (thick, black horizontal line) is the previous resistance area and the latest breakout zone. Since breaking this level, Ethereum has just skyrocketed like it’s bigger brother Bitcoin.
2. Flag, pennant, downward channel. No matter how you choose to name or fit criteria for this formation, we are near continuation or full breakout to the top side. If you observe the past price action from the very top, we can see that we have had responsive supportive buying at these key Fibonacci levels. More importantly is the stair stepping ever since the .618 Fibonacci level. We have had stepping up starting at .618, then the .5 zone and now we have it in the .382 zone. Considering that price is right on the upper channel and the RSI is neutral, we could have a great bias for long potential and a breakout.
3. This is where we should expect price to go if we break out of the channel. This is the next area of true resistance and the next area for further movement above the 800 area.