As most of my readers know, there has been a quiet debate about the short term future of XBT for the past few weeks. Will it rally to $4000, or fall to $2000?
I have been on the record expecting the former rather than the latter, but at the same time I have stated that I know that I do not know, and I will change my mind when/if supports break. We are now at a moment when it seems that XBT will likely declare it’s intentions. I imagine the indecision will leave today, or maybe tomorrow.
XBT is still within th arc pair on t his bull setup, so it is too soon to get a sell signal here. However it is worth noting that this pair has stopped XBT for (3) 12 hour bars so far.
The short term 30 minute chart might give us a better look at the dynamics of the coin:
On the 30 min chart, pricetime has reached the 5th arc of a bull setup. This is pretty strong resistance. If the market intends to reverse to a downward trend, it will likely do so in the near future. An energy point will be reached later today. A close above the arcs will be very bullish. A close below the top of square will be bearish. I am not sure yet which way this chart will break. However, taking some money off the table seems very prudent to me. A break one way or the other seems imminent.
ETH is sitting on support, but it is a bit disappointing that it has been moving down since the energy point was reached 2 candles ago. A longer term look at the same chart shows the coin in a 2nd arc pair.
Anything can happen in an arc pair, and there is no clear support on this chart until the top of square at 240. I’m not sure it will break down, but if it does, perhaps following XBT’s lead, it might find support there.
LTC looks like it has gone as far it is going to go on this run. If you haven’t taken at least some profits here, imho, you might want to consider it.
Remember: The author is a trader who is subject to all manner of error in judgment. Do your own research, and be prepared to take full responsibility for your own trades.