While this weekend’s Bitcoin (BTC) slump was a bit of a bummer, today’s recovery has helped maintain a positive technical outlook.
Looking at Bitcoin (BTC) on BitMEX, XBT has held a big Fib support line near $7,500 (Figure 1). That could be a positive.
Looking at Bitcoin (BTC) on BitMEX on a daily chart, the overbought condition in XBT has been relieved. Stochastics are now at the lower end of their band. That could allow the start of another major advance (Figure 2).
Looking at the work of famous trader Jesse Livermore (Figure 3), we see something very important in big coins. Ethereum (ETH), EOS, and Litecoin (LTC) all still show Livermore setups that could lead to a parabolic move up given the right catalyst (Figure 4, 5, 6).
Figure 3 Figure 4 Figure 5
Bottom Line: Looking at these charts, a really big move to the upside in crypto is still possible. The range trading has been annoying, but the big picture is still bullish. We don’t see many people talking about a move in Bitcoin (BTC) to $10,000, a move in Ethereum (ETH) to 400, a move in EOS to $16, or a move in Litecoin (LTC) to $250. That may be “pie in the sky” thinking. Then again, it may not.
The Crypto.IQ Trading Desk has been taking advantage of the pause in Bitcoin (BTC) to do some solid trading in smaller altcoins. I learn something new every day.
Join me there.