Bitcoin: Buy signal targeting 38600 and 40000/41000
|Bitcoin trades sideways in what looks more like a consolidation of the bear trend than a reversal pattern. This means we are more likely to head lower eventually as we hold strong resistance at 35500/36000.
HOWEVER, a break above 36500 is a short-term buy signal so be ready to reverse out of any shorts & into longs.
Ripple managing a small recovery to strong resistance at 0.7100/7300. This is now key to direction. So bulls need a clear break above here for a short-term buy signal.
Ethereum has climbed steadily to strong resistance at 2300/2350 into the end of the week.
Daily analysis
Bitcoin shorts at very strong resistance at 35500/36000 target minor support at33500/33000. A break below 32500 this week sees 31700/500 before a retest of29000/28500. A double bottom here would help to turn the medium-term outlook positive, although this is looking increasingly unlikely now. Watch for support at27500/27000 on any further losses.
Strong resistance at 35500/36000 has been tested through most of Sunday. A break above 36500 however is a short-term buy signal targeting 38600 & 40000/41000, perhaps as far as resistance at 42400/800.
Ripple crawls higher towards the strong resistance at 0.7100/7300. Shorts here target0.6660/0.6560. ON further losses look for 0.6340/6260. A break below 0.6200 the targets 0.6000/5900 before a retest of 0.5200/5100. 2019 high is at 0.4940. A break below here is catastrophic for bulls & risks a slide to 0.4400/4350.
Shorts at strong resistance at 0.7100/7300 need stops above 0.7350. A break higher can target 0.7800, perhaps as far as 0.8000/8100.
Ethereum bounces back to strong resistance at 2300/2350. Shorts need stops above2400. A break higher is a buy signal targeting strong resistance at 2600/2650. Bulls then need a break above 2700 for a longer-term buy signal.
Holding strong resistance at 2300/2350 targets first support at 2200/2150. If this holds the downside bulls are in with a chance to start to take control long term. Longs need stops below 2050. A break below here is a sell signal targeting 1950 &probably 61.8% Fibonacci support at 1728
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