—if you've been following me on social media since May 11, you will know that I predicted the crypto crash, after spotting a 2 month head & shoulders reversal pattern, which completed on May 17 for a clear sell signal.
crashed to the very important 6 month trend line and 200 day moving average support at 0.7040-0.6558
This is the best chance of an end to the crash.
collapsed to retest the 14 month 61.8% Fibonacci support at 1728. In fact, as I write, we bottomed exactly at 1731. Quite incredible how accurate technical analysis can be in crypto markets.
This is the last line of defense for bulls with a potential double bottom buy signal—if you have been waiting for an excellent buying opportunity, then this is worth a gamble.
Bitcoin retested the 30066 low, just above my ultimate target for the head & shoulders sell signal at 27500/27000. Although I do not see support at 30000, it is obviously a psychological number—markets can gravitate towards large round numbers.
A double bottom here cannot be ignore, especially when Ripple and Ethereum test very important longer term supports here and now.
Brave bulls can try longs at 31100/30000, but be aware that my ultimate target for the crash was 27500/27000. So save some funds to add to longs here. However longs need stops below 25500. A break lower signals significant further losses are likely. Longs at 31100/30000 can target 33500/34000 and 35500/36000.
First resistance at 37000/38000 is the main challenge for bulls. A break above 38500 signals further gains to 40500/41500.
Ripple crashed to the very important 6 month trend line and 200 day moving average support at 0.7040-0.6558. Brave bulls or longer term investors can try longs with stops below 0.6400.
If prices hold below here then all is lost for the bulls and a further significant correction to the downside looks likely. Initially we can target 0.5100 – 0.4800.
Longs at 0.7040-0.6558 target 0.7500 and 0.8000/8100. A break above 0.8300 signals further gains to 0.8950/0.9000. Expect very strong resistance at 0.9200/9450.
Ethereum tested the important 61.8% Fibonacci support at 1728 for a potential double bottom buy signal. Brave bulls can try longs here and can also average down, buying a little more at the 200 day moving average at 1550.
It is entirely possible that this will be the low for the crash. Longs MUST stop below 1500. A break lower to kills the recovery hopes & risks a slide to to 1300/1250. Although the decline may pause here I do not see this as a strong support level & longs would be extremely risky.
Longs at 1750/1550 initially target 2000/2100. Expect strong resistance at 2300/2400. We could reverse here and a retest of 1750/1550 cannot be ruled out.
Scalpers can try shorts (initially targeting 2200/2100) with stops above 2500. A break above 2500 is far more positive. I see this as a buy signal targeting 2600 and 2750/2800.
Disclaimer: No representation or warranty is made as to the accuracy or completeness of this information and opinions expressed may be subject to change without notice. Estimates and projections set forth herein are based on assumptions that may not be correct or otherwise realized. All reports and information are designed for information purposes only and neither the information contained herein nor any opinion expressed is deemed to constitute an offer or invitation to make an offer, to buy or sell any security or any option, futures or other related derivatives.