– If you have followed me on social media since May 11 you will know that I predicted the crypto crash, after spotting a 2 month head and shoulders reversal pattern, which completed on May 17 for a clear sell signal.

I also suggested longs at 31100/30000. We bottomed exactly at and shot higher to first resistance at 37000/38000 for an easy 7000 ticks profit.

XRP shorts at 38.2% Fibonacci and short term moving average resistance at 1.0515/1.0545 worked perfectly on the sell off to the first target of 0.9000/0.8970.

Another profit of over 100 pips.

longs at the 1730 area worked perfectly on the 1000 tick (or 58%) rally to strong resistance at 2750/2800. We topped exactly here yesterday and shorts at 2750/2800 worked perfectly as we sold off to the first support at 2400/2350. We bottomed exactly here and longs worked on the bounce back to 2750/2800 for a another 700 pips yesterday.

A total potential profit of 1700 pips already this week. 

Today’s Analysis

Bitcoin shot higher to first resistance at 37000/38000 and is the main challenge for bulls today. However we also have 200 day moving average resistance at 40500/800.

A break above 41000 is a buy signal targeting the head & shoulders neckline at 43600/43800. Shorts need stops above 44000.

We should now be on the way to 200 day moving average resistance at 40500/800. Holding here targets 38800/700, perhaps as far as support at 37100/37000. Longs need stops below 36500. Further losses risk a slide to 35500 & a retest of strong support at 31100/30000, just above my ultimate target for the head and shoulders sell signal at 27500/27000.

Brave bulls can try longs again 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.

Ripple retests important 38.2% Fibonacci & short term moving average resistance at 1.0515/1.0545. Shorts need stops above 1.1400. A break higher is a buy signal targeting 1.1700/1.1800, perhaps as far as 1.3000/1.3500.

Shorts at strong resistance at 1.0515/1.0545 re-target 0.9000/0.8970, perhaps as far as 0.8050/30. Again expect very important 6 month trend line & 200 day moving average support at 0.7040-0.6558 to hold the downside. 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 & a further significant correction to the downside looks likely.

Initially we can target 0.5100 – 0.4800.

Ethereum making a break above strong resistance at 2750/2800 this morning for another buy signal targeting first resistance at 3050/3100, perhaps as far as strong resistance at 3300/3400. Shorts need stops above 3500.

Longs at first support at 2800/2750 need stops below 2700. Support again at 2400/2350. A low for the day is certainly possible again but longs need stops below 2300. A break lower targets 2140/30 before a retest of important 61.8% Fibonacci support at 1728. Brave bulls can try longs here again and can also average down, buying a little more at the 200 day moving average at 1600. 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 and risks a slide to to 1300/1250. Although the decline may pause here I do not see this as a strong support level and longs would be extremely risky.

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 realised. 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.

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