Let’s get right to the charts, especially due to the overnight drop…
BTC$ (4h & daily)
When we went through the 8,250 level a clear break of the medium term bullish structure broke. It was expected that we would first find support at around the 7,950 level, which was the next big liquidity pool.
It would not be surprising if we see some counter moves back up again, but for the next few days we expect to trend lower with 7,200 as the next big support.
In case we break higher through the 8,250 level, this will invalidate the bearish medium term call.
On the bigger picture, the structure is still bullish with the same support level as on the 4h chart. 7,200 needs to hold otherwise the path back into the high volume range zone will be open, with 6,400 as the next level.
ETH$ (4h & daily)
The picture is similar here. The sell off pushed the price deep into the Ichimoku cloud and even went past the high volume level of 250.
We also expect prices to trend lower over the next few days, with support coming in at around 225-235.
On the bigger picture, the market is still looking bullish with a broader correction on its way.
The market may correct down to 200 and we are still seeing a bullish setup with the trendline (black) intact.
This us one of the most flawless uptrends we have witnessed over the past few months. The wave structure has been very clean with consecutive higher highs and higher lows. If this is to continue, we expect the prices not to correct further than 85, and then to reach new highs above 120.
A bit more sideways trending would be good for the pair as it would take out some steepness of the trend and will make it look healthier.
Ripple is still fighting for the reversal of its long lasting down trend. As we have mentioned before, the first part was achieved by printing a higher high, but to confirm the reversal we need to see a higher low. That higher low will be confirmed when we trade above 0.50.
The entire reversal will turn invalid if we break below 0.35.
We wrote about this potential reverse shoulder-head-shoulder formation. We think it is safe to say that we have a confirmed pattern.
The breakout of the neckline was accompanied by good volume and we have even seen a textbook retest of it.
The target of this pattern is around 0.04740 (green line).
Not much to say here. Play the trend and the boundaries of the channel.