Crypto Update: Bitcoin Outlook Negative, Ripple Trends, Ether At Double Top
Jason Sen | Oct 26, 2021 06:05AM ET
Bitcoin trying a recovery but failure to beat 64000 keeps the outlook negative and risks the formation of a head & shoulders sell signal. A break below the neckline at 60000 will confirm. The 100 hour MA is currently at 63000/63500. If this holds a bounce, we have the making of a head & shoulders reversal pattern, which will be confirmed with a break below 60000. The weekly candle is looking less than positive. A weekly close at 61000 is negative and could in fact signal the mother of all double tops. Seriously. This is very negative.
Ripple remains in a sideways trend holding support at 10700/750 and longs working on the bounce to 11250.
Ethereum made a high for the day exactly at the all time high at 4355/85. The resistance was clearly rejected with prices unchanged on the day as we collapsed to 4010. THIS LEAVES IMPORTANT DOUBLE TOP RISK.
Some video analysis: https://youtu.be/ZGDSbDzQEtc
h2 Today’s Analysis/h2Bitcoin shorts at 62500/63000 must stop above 64000. Only above here do I see bulls back in the game. Prices are likely then to push higher towards 65000/500 and then retest the all time high at 66500/67000. A break higher is a buy signal initially targeting 69500/70000. First support at 60700/500. Longs need stops below 60000.
A break below here is a very important sell signal initially targeting 58000. I do not see this as a strong support. A break below here over the weekend is a longer term sell signal initially targeting 57000/56500. I am talking crash conditions because we will be building a huge bull trap. A break below 54000 is the next sell signal.
Ripple longs at first support at 10700/750 re-target 11000, 11400 and 11600. Expect strong resistance at 12020/12100. A break higher can target 11300/11400. First support at 10700/750. Most important support of the week at 10250/10200. Holding here keeps bulls in control. A break below here is an important sell signal initially targeting less important 9700/9600.
On a break below I would expected significant losses. Initially we should target 8600. This may hold on the first test and we could even see a decent bounce. However, I would be a seller at resistance on this bounce, expecting the support to break eventually for another significant sell signal.
Ethereum has a double top sell signal. However, we have unexpectedly recovered back above 4000/3980 and can perhaps retest the all time high at 4355/85. A break above here is required to eliminate the double top sell signal risk now and will initially target 4500.
First support at 4000/3980 but longs need stops below 3900. A break lower meets better support at 3770/30. A decent bounce from here is expected, perhaps as far as 3950. Longs need stops below 3670. A break lower is a sell signal targeting 3570/50 the strong support at 3380/40. Longs need stops below 3300.
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