Some hefty price movements kept us busy over the past week. I will put the focus on some coins that have underperformed. But first we will begin with the big two: BTC and ETH.
The impulsiveness of the upmoves have decreased since we started at the base of 6.4k. I will use the Ichimoku cloud as one of my indicators to judge if we have some more steps to go to the upside.
Currently, we are trading away from the cloud, which is still strongly bullish. But in terms of lower time frames, it has already turned, and prices are deep in the cloud, but the cloud itself did not turned bearish yet.
On the 4h chart, we have room to move down to the 9.4k level, which would push the price into the cloud but not through it. I am expecting a pullback and that is my first level where I will buy back some of my shorts. If the market goes for a deeper correction, the next level to watch is 9k.
That would push us through the cloud and probably turn it bearish. Otherwise, if 10.3k breaks to the upside, I will close my shorts and let my unleveraged longs run.
The recent high of $230 will be my invalidation level for any correction. I do expect the correction to be a bit deeper as we are pretty stretched in terms of how far away the prices are from the Ichimoku cloud.
I believe a healthy correction could take us down to $200 without harming the bullish set-up to much.
But my money is on an upward sloping channel. I am looking for the next leg higher towards the top of $13.
There is a possible bull flag in play. I reckon we will have this confirmed when we trade through $8.50 on a daily closing.
The bullish case will become invalid when we trade through $7.15.Read more