Ethereum and Bitcoin forecasted short-term reversal
First, my Ethereum forecasts have played out just fine but the targets were hit a little early. Well, way too early. Bitcoin has been in a slow and steady downtrend while Ethereum continues is a massive move to the top. However, I have been watching Ethereum’s movements closely over the last 5 days and right now it is up against the most important resistance area it has seen and Bitcoin is near a breakout zone of its time resistance.
Let’s look at Ethereum first.
Ethereum has performed just magically. The weakness of the other major Coinbase pairs has really made this cryptocoin shine. But ever since we touched the 1400 handle, we have retreated and we came back to this resistance/support arc (where price is sitting right now). What happened when the price came back to this arc after it blew threw? It just continued to fall. There was no support. This is a very bearish and weak sign and we should expect a violent move to the south if it doesn’t find support within the ark. Now let’s look at Bitcoin.
Bitcoin is in a very, very special area. I am a 100% (well, maybe 98%) Gann analyst and I believe and use his approaches and theories. One of the hardest concepts for me to wrap my head around was that price movements on a chart, while up and down, must not always be viewed in such a linear way.
An example is what Bitcoin is doing right now. It is inside its resistance arc, looking back to the left of the chart you see price was trading against it and only went through the arc because of time. In a few hours, price will be outside of this arc. When price is near an arc and it is not trading above or below it, but inside of it in time, we need to look at price and imagine it is a straight line above where it currently is. Where I see price actually and truthfully sitting at is the 16,660 area.
Now, wrap your heads around this crazy Madame Cleo stuff for a minute. What I am saying is that our brains and our software and our calculations are fooling us. Price is not actually where it is in time. What I am saying is that over the next few hours to the next 24 hours, we will see a return to equilibrium in time and price with Bitcoin rising up far and fast.
But with all mad-scientist theories, they don’t always pan out, but it’s pretty awesome when they do.