The weekend trade was mostly a bore. However, the strength of Bitcoin’s resilience was exciting. Instead of a long, slow and protracted move south (which has been the norm lately) over the weekend, instead, we had a steady rise and a hold. Ethereum, on the other hand, has not traded outside of a 20 dollar range for over a week.

Bitcoin

Bitcoin has completed a very bullish setup: The Cup & Handle. It is a sign of continuation to the upside. You can clearly see that it looks just like a coffee or teacup, with a handle. The price action behavior behind this pattern is essentially a triple top, but the 3rd test is often in quick succession after the second. It is common to see price hold here for a time before issuing a bullish breakout above. What is even more bullish about this formation is the Fibonacci level price has crossed above (.618) and is currently sitting on (.786). Also, the fact that we did not have really any selling conviction from the bears this past weekend is a great sign that prices are just adjusting for the next leg up. The $12,500 value area is an easy target from this level.

Ethereum

I don’t even need to draw indicators to show how right of a range Ethereum has been in. Since the 24th of February, Ethereum has not moved beyond a $20 trading range. Now there have been some attempts, on lower time frames, to try and sell or test the selling pressure, but this has all been bought up. What we have not had is a lot of conviction from the bulls to try and move higher. This tight consolidation is a boon though: it allows us to set up two easy trades: long above the 900 value area and short below the 800 value area.

So what’s the setup?

Ethereum is already in a position to expand in one direction or the other. There are more than likely a great many resting orders above and below the current trading range. With Bitcoin, we can expect to see a bullish move higher. However, we can also expect some pullback to the 11250 and 11000 value area before that next move.