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

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

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

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.

Happy trading!

 

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.

Categories: Bitcoin

4 Comments

Alejandro Palacios · July 5, 2017 at 9:31 pm

I an just reading the post,, LTC is now at 50USD . I missed the selling target?? should I still sell at this price?…. or just hold it until the next rise?

    Jim · July 6, 2017 at 8:41 am

    No, i wouldn’t sell now. imho, the correction over… a rally will likely ensue

cheese geter · July 7, 2017 at 8:59 am

Hi, Jim. First off, I love your analyses. I’m trying to learn Gann Squares to I can follow your assessments more closely. One thing I’ve noticed is that you don’t inject factors like fundamentals, market climate, or news surrounding a lot of these cryptos.

For example, don’t you think that litecoin atm is used a hedge against BTC uncertainty? As BTC and ETH been consolidating for a breakout, LTC broke out (and hit 57 just like you predicted). So don’t you think LTC is correct a lot further if BTC and ETH broke in the immediate future?

Once again, great work! I love reading your posts.

    Jim · July 7, 2017 at 9:12 pm

    You know, you may be correct about all those things, but in my experience, it does not help (too much) as a trader to know these things. Sometimes it is helpful of course. But often the news has an agenda. It is designed to push prices up or down or otherwise distract from the message the chart is already revealing.
    You would be amazed how many times, how very often, we can know when the market will reverse, a day or two BEFORE big news comes out.

Leave a Reply

Your email address will not be published. Required fields are marked *