Yesterday’s Ethereum piece highlighting the work of Jesse Livermore got major traction with big players. Jesse Livermore was a technical analyst and trader back in the early 1900s. Based on the feedback on this piece, we are back to running with the idea that old, old technical analysis techniques are driving the recent rally and this bull market.
This warrants a return to the Wyckoff scenario we have been discussing for much of the year. Wyckoff, like Livermore, was also a technical analyst from back in the early 1900s.
Looking at the theoretical Wyckoff scenario (Figure 1) and the Bitcoin on BitMEX chart (Figure 2), the Wyckoff scenario seems to imply that the next move could be for XBTUSD to make a move to the next diagonal speed line near $6,800. $6,800 was a point where the major breakdown started in September of last year.
Looking closer at the recent chart, Bitcoin (BTC) on BitMEX has bounced off a diagonal Fibonacci speed line and seems to have resumed its uptrend in spite of resistance (Figure 2).
Also of note is the Bitcoin (BTC) chart on Coinbase. The 3-day chart indicates an imminent break above both a horizontal resistance point and major Fibonacci speed resistance line(Figure 3). That speed resistance line is really big as it was drawn off the 20k high.
Bottom Line: The trend is your friend. Yes, Bitcoin (BTC) has rallied a lot, but you have to consider the idea the Ethereum (ETH) could lead a new charge higher. Theoretically, that could create a new ramp up for Bitcoin (BTC) in advance of retail buyers coming into the market.
Now is the time to get involved. The Crypto.IQ Trading Desk is ready, and they provide the tactical navigation you need to prepare for the next wave.
Join me there.