1/7/2019
Today, we revisit the chart from the morning report of Tuesday last week. We wrote that in the BTC market we are starting to see SUPPORT in a BEARISH market. Over the weekend, we watched this upward slopping SUPPORT line converge and penetrate through a short-term RESISTANCE level of $3,900, and gap $150 higher. We have been of the mindset to SELL rallies in this BEARISH market, however at the moment, we see potential upside to the MAJOR RESISTANCE level at $4,400, so patience can be exercised. We are still waiting to witness above average volumes to give us an indication of the next $1,000 move in BTC (as observed, last weeks volumes were very weak). Until then, we assume to remain rangebound between $4,400 and the lows of $3,200.
With regards to ETH, we see an upward wedge formation with RESISTANCE at $160. Last week we wrote our justification for why ETH longs would be wise to hedge their inventory using a Fence (aka a Risk Reversal). As this SUPPORT and RESISTANCE converges, it appears they will cross during the week of the Constantinople fork. We are not going to pick a direction, but a major price move could come from this event.
Today, we revisit the chart from the morning report of Tuesday last week. We wrote that in the BTC market we are starting to see SUPPORT in a BEARISH market. Over the weekend, we watched this upward slopping SUPPORT line converge and penetrate through a short-term RESISTANCE level of $3,900, and gap $150 higher. We have been of the mindset to SELL rallies in this BEARISH market, however at the moment, we see potential upside to the MAJOR RESISTANCE level at $4,400, so patience can be exercised. We are still waiting to witness above average volumes to give us an indication of the next $1,000 move in BTC (as observed, last weeks volumes were very weak). Until then, we assume to remain rangebound between $4,400 and the lows of $3,200.
With regards to ETH, we see an upward wedge formation with RESISTANCE at $160. Last week we wrote our justification for why ETH longs would be wise to hedge their inventory using a Fence (aka a Risk Reversal). As this SUPPORT and RESISTANCE converges, it appears they will cross during the week of the Constantinople fork. We are not going to pick a direction, but a major price move could come from this event.