[ad_1]
Fuel For One Last Push?
We believe that Bitcoin is in the process of forming its mid-cycle top as highlighted in our last Crypto Piece. However, that doesn’t it’s all downside in the near-term for all of crypto, at least not yet. Ethereum relative to Bitcoin has shown sign of significant strength from the value zone. Last week’s candle was able to close above the downtrend, but is having a tricky time at the 0.0596 level we’ve highlighted on multiple occasions.
Ethereum is currently near support around $2500. That region (with a minimum of $2375) is a must hold region to prevent further correction. On the upside, the $2975 region looks attractive for one last push up before a more meaningful correction. However, the next section shows how this would depend on Bitcoin’s topping pattern.
Bitcoin, Please Be Kind
Ethereum’s next move depends on the type of topping pattern that Bitcoin puts in. IF Bitcoin decides to continue its downside without any retracements then it’s game over for the rest of the crypto market in the near term.
However, IF Bitcoin puts in a topping pattern while retracing, similar to 2017/2018 top, then Ethereum and some altcoins still have one more push up left. Back then, Bitcoin made its top in Dec 2017. However, during its topping pattern that followed, Ethereum was able to see one more leg up before eventually joining Bitcoin in the correction.
Please note that we’re NOT calling for a major top in Bitcoin (like 2017/2018 ended up being), but a mid-cycle top that leads to a meaningful correction and then further upside.
This time around, Bitcoin has likely put in a mid-cycle top during the Bitcoin ETF announcement. However, the question is if a similar topping pattern is in the works that will allow Ethereum to reach the $2975 level before ETH joins BTC in its correction. We believe that such a development is very probable as far as Bitcoin holds the…
[ad_2]
Source link