Key Crpyo Price Levels going into the weekend
Several cryptocurrencies at or near some critical levels. Weekends often yield some major price moves.
Ethereum’s chart displays a 1/16th zone of a Square of 52. Clear support and some evidence of dip-buying exists against the current uptrend angle. There are two primary resistance and support zones above and below where the price is presently trading. Resistance is between 177 and 172. 172 is the cross of the angles at number three. Support is between 171 and 172. If we follow Gann’s rule of angles, then we know where to look for both short and long profit-taking. Gann’s rule of angles states that when price breaks one angle, it will move to the next. A break of support would mean price moves down to the next angle, which is roughly -8.63% below at 157.90. A break above resistance would yield a slightly larger return at +10.20% if price were to reach the 190.50 value area.
Litecoin is in a severe make or break condition. The hourly chart above shows a head and shoulder pattern that could develop before the end of Friday’s trading. It is not a head and shoulders pattern yet – price needs to break the neckline before it becomes a head and shoulder pattern. This pattern is also forming at the bottom of a move, which means it has a high probability of creating a bear trap on any movement below the neckline. If price drops down below that neckline in a bearish move, then we could see price drop down to the $49 value area. A step higher should be limited to the $59 value area. Regardless of the move up or down, there is an important price and time event up ahead. A powerful square of price and time occurs at 55.37 on October 24th. This is the exact center of the current square Litecoin is trading in. Expect some robust activity to happen around that date.
Bitcoin is trading between two fairly equidistant support and resistance levels relative to its current trading price of 7915.31. The next angle of resistance is above is at 8845 while the support level is below at 6963. However, the most important near term price level is the 61.8% Fibonacci level of the current Square of 52. That 61.8% Fibonacci level is at 7659 and has been a significant near term support level since the first test back on September 26th. From a time cycle based perspective, a powerful harmonic Fibonacci time cycle occurs on October 28th – the 88.6% range of the current Square of 52.
Regarding any break of the resistance or support angles, the actual move beyond either of those levels is relatively limited in the near term. Price may oscillate around the 61.8% range until the end of this current Square of 52 which ends on December 8th, 2019. After that date, a new Square of 52 will be constructed depending on the final 2019 high or low that is developed.