Bitcoin Weekly Chart
Last week I said ‘We closed last week just above the trend line last week, but we need to trade above 97923, the wave (X) high, to negate the bearish view on a weekly basis. Let’s check the shorter timeframes to see if wave (B) is close to ending.’ Despite the best month in over a year for BTC we need to look for signs of exhaustion in the shorter terms for signs of a top.
Bitcoin Daily Chart
Last week we said, ‘Since the last update, the 50% retrace level has been tested several times with a new high this morning at 79488. No change in the view, so if not short, I would look to sell on a daily basis.’ You can see from the ghost arrow we were looking for higher before lower, today we made another slight new high at 80593 and on a daily basis we can’t rule out a further test of the 83448 and possibly 88980 the 76.4% retrace level with stops remaining above the wave (X) high at 97922. Let’s see if any clues in the shorter term hourly charts.
Bitcoin Short Term Chart
Last week we said ‘Given the divergence in the MACD, I believe this slight new high is the end of wave (B). A 2-hour close below the channel followed by a close below minor wave (iv) at 77181 will confirm that wave (C) to new lows is underway.’ We traded down to 74935 before reversing and making, against expectations, another new high. We are currently testing the top of the channel, so let’s look at the very short-term 15 minute chart to breakdown what appears to be the final wave to complete the correction.
Ethereum Long Term Chart
For the past few weeks, we have said ‘I am happy to sell now as we test the top of the channel at 2085 with stops above 2784. Expect an acceleration lower on a break of 1746.’ As you can see, there is no change in the view as we continue to test the top of the channel. If not short sell now with stops remaining at 2784.
Ethereum Short Term Chart
Last time we said ‘I am happy to stay short, if not short sell now with stops above the wave (iv) high at 2465. ‘ No change in view and I am adding to shorts now at 2365 with stops remaining at 2465. A move below 2200 should confirm the wave iii lower and see an acceleration to the downside.
