If Bitcoin stays above here, buy these here
Bitcoin is, again, sitting right against a strong resistance Gann angle. This downtrend angle has been in existence since the all-time high. But if we do cross above and hold above, we’ve got some altcoins resting and waiting for extended gains.
Bitcoin is trading right up against an important level. From the beginning of this Gann Square of 52, the current angle has operated as the strongest source of resistance for Bitcoin and has resulted in strong selling as price as approached it. However, the most recent test over weekend is showing signs of diminished power behind this angle. Angles are not like horizontal levels of support and resistance – they weaken the more they get tested.
We also need to be aware that the monthly and weekly charts are supportive for strong upwards momentum here in the near future, especially on the monthly chart. If we do breakout above this 7780 value area, there is a massive motivewave ahead. We should expect some pressure past the 7780 value area though. The highlighted red box shows a confluence zone of the inner arc, a natural harmonic pivot, and a minor Gann angle. Above that: clear skies.
Based on the 4 hour chart, Bitcoin Gold will enter a breakout entry at the 47.12 area. Bitcoin Gold is a personal favorite of mine due to it’s ‘politics’, so I have a clear bias and I do have sizeable positions. Full disclosure there. Regardless, it’s a low volume traded coin, but it responds very well to lagging conditions. Bitcoin Gold frequently lags the market but does return to equal value given time. It’s a true underperformer at these levels. The 47.12 area would more than likely create the scenario where the lagging span crosses above the cloud, creating our final requirement for entry.
If you haven’t been paying attention to the EOS mainnet news, then you probably don’t care! EOS though is still a fantastic and tradable coin, one of the most active. We’ve had a very normal amount of consolidation at the $14-$15 level. However, if the Bitcoin breakout happens, the next entry in EOS is at a return and a cross above the Conversion Line at 15.56.
Based solely on market geometry, Litecoin is a buy. But if we want to wait for the Bitcoin breakout, then we need to look at the breakout here of the lagging span to cross above the cloud. The entry here would be the 128.18 level. More than that though, This is the only major cryptocurrency that is in its expansive zone. The rule of angles states that when an angle breaks, it moves to test the next. Litecoin could very well lead the charge higher here with a target of 145.