Major Cryptos Enter Bullish Mode

By Ino.com

The price of Bitcoin has built two large legs down that perfectly fit the slightly up-sloping trend channel (orange). It means these legs are equal in size. It is a good sign as we could consider the large consolidation as completed then.

Ethereum lags behind Bitcoin, as you can see in the chart above.

The chart structure looks similar to the Bitcoin chart. We have two red legs down either, although the second leg down has slightly overshot the size of leg 1 as the price punctured the orange channel.

The strong move up after the leg 2 down did not break above any preceding minor peaks as it stopped at $3,285. That move has been retraced quite deeply, the same as in the case of Bitcoin. The valley of leg 2 in the area of $2,150 has been kept untouched.

The buy setup has been built the same way here. We have got a minor spike up to $2,880, which was set as a bullish trigger. It was followed by a tiny correction. Yesterday, the price of Ethereum crossed over that trigger. The impulse was not as strong as we saw in Bitcoin. The “watch and catch-up” mode could be the reason for this lag as investors observe Bitcoin’s behavior first to plan actions in other cryptos.

The RSI has entered the bullish territory.

The all-time peak of $4,868 is the minimum (conservative) target as the price should at least revisit the record high, either to “fly” or “die” there. The invalidation level is located below the valley of red leg 2 under $2,150. The risk-reward ratio of this setup is less than for Bitcoin at 2.7, with a conservative target. Later we could update the aimed area.

Intelligent trades!

Aibek Burabayev
INO.com Contributor, Metals

Disclosure: This contributor has no positions in any stocks mentioned in this article. This article is the opinion of the contributor themselves. The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. This contributor is not receiving compensation (other than from INO.com) for their opinion.

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Source: Major Cryptos Enter Bullish Mode