Last Friday, I talked about two setups for the two major cryptocoins Bitcoin and Ethereum. We had some great movement on both of these pairs and made for some great gains. The structure of our Gann Square held up nicely with the resistance arcs as well. Let’s review these setups.


This is last Friday’s chart


And this is today’s chart.

121817btcOne of the things I wanted us to call attention to was the 45-degree angle (the middle diagonal line). This angle represents the strongest part of support or resistance for the entire chart. I mentioned that a break above the highlighted triangle area would be very bullish and would probably be dramatic rise. We did see both of those scenarios play out. We had a nice rise and breakout from the 17876.85 area to the 20000 area.

Take special notice of the purple arc, the farthest one out. This arc has been operating as a natural field of resistance for Bitcoin so far. A break outside of it is going to be very bullish and will mean another big move to the upside.

Now let’s look at Ethereum’s trade.


This is last Friday’s Ethereum chart.


And this is today’s chart.

121817ethJust like Bitcoins trade, this one was a great setup and a great profit maker. We really went out of the channel nicely and then traded between the .236 and .382 Fibonacci zones for a good part of the weekend. We then proceeded to the projected area of 790 and we have now hit the 800 area making all time times for Ethereum!

What to look for:

The Bitcoin trade is not a fun one right now. The CME futures contracts started and there was a bit of a selloff in the futures. However, Bitcoin remains in strong trending territory. All day today it has been stuck in the 18750 area without having any convincing move down or up. As time continues to move on, we get closer and closer to the 45-degree angle. Bitcoin is a beast. And all it has done is move up. We should expect that this consolidation area we are experiencing will not last long and we should see some big moves up towards 20k.

On Ethereum, this is a fairly easy decision. When (not if) we hit the $800 area, we have nothing but blue skies above towards 1000. We should expect some natural resistance at the 900 area, but Ethereum is proving to be as resilient and strong as BTC these days. Congratulations to anyone who made a profit on those trade ideas!