I’m still trying to fully understand chart pattern behaviour and the best way to learn is to put it into practice and request feedback from those more knowledgeable than myself.
So, looking at the 3 main crypto coins, lets see what we can see in the charts.
Something I have noticed in Crypto charts is that respected levels aren’t as accurate as in forex charts due to the increased volatility and when you see triangular patterns, the price action does not enter the apex as much as in forex. Expect breakouts earlier!
Bitcoin vs US Dollar
Everyone is talking about the $10k area. If it closes above we’re going back up. But previous prices prove that isn’t the case. 17th Feb we broke $10k and dropped back below a week later.
Looking at the 4hr chart above, we can see strong resistance at near $11,600. I’d imagine current price either breaking high before the wedge apex to reach $11,600. This could be a false break. Or, price may actually continue to the apex and reach $11,600 there. This would form a potential double top at a strong resistance where price can fall.
Where could the fall be to? First target would be the neckline which has shown previous support and resistance at around $9,400 level. If that breaks, there’s talks of BTC reaching $8,000 which is near previous lows.
Currently, I’m out of BTC and have half my available funds held as Euros and half in DGD (Which mostly has an inverse price effect against Bitcoin on the long term view)
Ethereum vs US Dollar
Ethereum is also facing compression as can be seen in the chart above. A strong decline since its January highs, there’s a chance this could break out of the compression to previous lows between $650 to $700 range.
Some predict ETH to reach as low as $600 which may well be true if it spikes down and the $650 doesn’t hold due to volatility.
Litecoin vs US Dollar
Litecoin shows a similar pattern to Ethereum overall. Price is consolidating into a compression triangle and overall is in a strong downtrend after December highs.
Where could it go down to? Possibly previous 2018 lows of around $190 or to pre-December highs of $160.
I could be completely wrong. I do not consider myself an expert in chart patterns and I am learning myself. So I urge you to do your own research and not to blindly follow me.
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