- December 6, 2020
- Posted by: Tradingshot Articles
- Category: Cryptocurrency
Back in August I published a warning on ETHBTC, warning traders that it was time to ease on Ethereum as seen below:
My reasons were more than obvious and had to do with the price nearing not just the 1W MA200 but also the Lower Highs trend-line, the 0.382 Fibonacci retracement level and the White Curve (Parabola). As you see all conditions got filled, even the RSI got rejected on its Higher Highs trend-line, and ETHBTC pulled back.
Right now we have the conditions for the reverse action as the price found support on the 1W MA50 (blue trend-line) and is rebounding. Even the RSI bounced on its 12 month Support, as strong sign indeed.
The question is where will the next high be? The conservative, steady 0.5 Fibonacci or the more aggressive 0.618? Still, the pair has to get past the 1W MA200 (orange trend-line) before those Fibs are met, so every trader depending on their horizon (holding period) have their respective targets (short, medium, long-term).
In my personal opinion, I give more probabilities to the 0.618 Fib at 0.0666, even the Symmetrical High around 0.0870. The reason is because I give more weight to the White Hyperbola being the dominant pattern here. And as you see every hit of the RSI on the Higher Highs (and Lower Highs during the Bear Cycle) trend-line has made (or almost made) contact with the Hyperbola.
So is 0.0666 or even 0.0870 possible for ETHBTC as long as the 1W MA50 holds within the first half of 2021?
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