Bitcoin appears to form a bear flag
Bitcoin appears to form a bear flag. This means that we are consolidating the short term downtrend and will likely break lower for a sell signal. We missed a break above trendline resistance so bears seem to be in control.
Ripple XRP has failed at significant 38.2% Fibonacci and short-term moving average resistance at 1.0515 / 1.0545 all this week, leaving a more negative outlook for today. Shorts need stops above 1.1100.
Ethereum still maintains strong resistance at 2750/2800 all week to leave a more negative outlook for today. A break above 2850 is a buy signal.
Bitcoin in a bearish flag from support at 34800/500 until what is expected to be key resistance at 38500/39500 today. A break above 4000 is a buy signal but only targets the 200 day moving average resistance at 41500/42500. Try on shorts here, stop above 43500.
Very minor support at 37000 but below may target a short term sell signal targeting 35500/300. A breakout below 35000 is a sell signal targeting 3500, possibly up to 31100/3000. Although we did buy here last time around, this time it’s more likely that we will lower our ultimate target for the head-and-shoulders sell signal to 27500/27000.
High resistance ripple shorts at 1.0515 / 1.0545 retarget 0.9400 / 9300. On other losses, look for 0.9000 / 0.8980 & 0.8050 / 30. Expect a very large 6 month trendline again and 200 day moving average support at 0.7040-0.6558 to hold the downside. Courageous bulls or longer term investors can try long positions with stops below 0.6400. If prices hold below all is lost for the bulls and a further significant downward correction looks likely. Initially, we can target 0.5100 – 0.4800.
We are testing a significant resistance of 38.2% Fibonacci and the short term moving average at 1.0515 / 1.0545. Shorts need stops above 1.1100. A breakout to the upside is a buy signal targeting 1.1700 / 1.1800, possibly up to 1.3000 / 1.3500.
Ethereum shorts at strong resistance at 2750/2800 should stop above 2850. A break up is a buy signal targeting 3050/3100, possibly up to strong resistance at 3300 / 3400. Shorts need stops above 3500.
Holding the first resistance at 2750/2800 resets the 2550/2500 targets, possibly up to minor support at 2380/2350. If we continue to move lower into the 3 week downtrend, look for 2140/30 before retesting the strong 61.8% Fibonacci support at 1728.