The wind has dropped, BTC volatility and volume have diminished to almost nothing. most of the other coins are drifting trendlessly sideways awaiting a resolution. This is the eye of the storm, and augurs a pick-up in excitement starting sometime in the next days. Whether you are long or short, this is a great chance to get into position.
We are pushing ever further into the apex of the large bullish pennant (purple) – the drop in volume and volatility and the flattening of MACD and RSI show this is a market whose existing trend (the bear market since Feb) is petering out, and is ready to start a new trend.
BTC is pushing into the apex of two nested triangles at once – the major purple pennant and this smaller green one which has held us in stasis for the last couple of weeks. The latter has transformed overnight from a symmetrical triangle (neutral) to an ascending triangle (bullish bias). Volume is diminishing relative to both timescales. Bulls continue to have the upper hand on impulse moves within this smaller triangle and the outcome currently looks to favour them.
Similar picture for ETH which is treading water to the right of its former downtrend. The apex here looks to be earlier than BTC’s ascending triangle, around Wednesday, so it's possible we'll see ETH lead BTC out of the doldrums. Last night saw a good volume break out of this north, we’re currently backtesting on low volume. A confirmation of this break north, via a move up past $239 would give us a target of $293 (green, above).
Ripple is seeing support from prior resistance $0.476. Target 1 remains $0.67, although the double top (blue arrows) will be new resistance at $0.60-$0.62. The lack of bearish volume since that top looks good for bulls.
LTC has just popped above its downtrend on good volume. It’s above major resistance so in a good position; if it holds above the downtrend, target 1 is $74 above (red dashed).
A similar story for BCH. Small break out of the downtrend last night. No volume yet, but a move higher would take us to the $551-$555 gap, and beyond that T1 is at $602 just above.
I’m including an EOS 4 hr chart today as that mirrors the ascending triangle on BTC. The ascending triangle out of the downtrend makes this a very bullish setup. Target 1 is $7.
Meanwhile BTC shorts just don't learn it seems - they're still in an uptrend (green)
I'd expect a break of that trend to coincide with a bullish breakout of the market, and suspect that's a matter of when not if.
The storm-wall is approaching fast.
BCB Group has no position or opinion on the price of Bitcoin or any other cryptocurrency and this article should not be construed as analysis of or advice regarding the current or future market price of Bitcoin or any other cryptocurrency. No analysis of the price movements of BTC or any other cryptocurrency or any other asset provided by BCB Group should be construed as an invitation or inducement to buy, sell or otherwise to trade BTC or any other cryptocurrency.
Strategy and Execution Partner
Jon is BCB’s head strategist, with an emphasis on market intelligence. An expert in behavioural science and highly experienced chartist, Jon has been providing BCB’s clients with crypto and macro technical analysis since 2017, and has quickly gained a reputation for accuracy after correctly calling the December 2017 top and August 2018 bottom.
Jon is also MD of British music production company Poseidon. He began studying technical analysis in 2000 due to its overlap with behavioural economics – much used in Poseidon's international marketing work, which has seen the company achieve three iTunes US number one albums among other notable successes.