LIVE Gold Prices $  | E-Mail Subscriptions | Update GoldSeek | GoldSeek Radio 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page 

 GoldSeek.com >> News >> Story  Disclaimer 
 
Latest Headlines

Precious Metals Update Video: Gold consolidating
By: Ira Epstein

Gold & Jackson Hole: No Cause For Concern
By: Stewart Thomson, Graceland Updates

GDP Ain’t What it Used to Be!
By: David Haggith

The Case for Gold Keeps Getting Stronger As Negative Interest Rates Spread
By: Clint Siegner, Money Metals

Precious Metals Update Video: Gold consolidating
By: Ira Epstein

GoldSeek Radio: Gerald Celente and Bill Murphy
By: Chris Waltzek, GoldSeek Radio

SWOT Analysis: Gold Equities Have Room to Run…
By: Frank Holmes, US Funds

Technical Scoop: 200 Years - Gold/Gold Ratio, Precious Metals, equity, bond market updates and more
By: David Chapman

Gold Set to Correct but Internals Remain Bullish
By: Jordan Roy-Byrne CMT, MFTA

The Market Has Gone Nowhere In The Last Twelve Months
By: Avi Gilburt

 
Search

GoldSeek Web

 
Bottom Holds in Bitcoin, Ethereum: Price Must Prove Sentiments


 -- Published: Tuesday, 5 June 2018 | Print  | Disqus 

by Ryan Wilday

Last week in my article, "A bottom in the crypto market, or more blood-letting?" I suggested that a bottom could be imminent, or that we had bottomed. I often look to our bellwethers, Bitcoin(BTC-USD) and Ethereum (ETH-USD), as signals for the larger crypto market.

I wanted to see $7085 hold in bitcoin and $495 in Ethereum. On May 28, bitcoin hit $7075, a nominal break and ethereum $505. So far, those levels have held, and we appear to have set up bullishly. As long as they do, we have a very bullish setup - the five-wave pattern off the April lows, which suggests this wave ii we believe bottomed that proceeds a larger third wave rally.

Below are six-hour charts that show the expected extent of the coming rally, if these levels hold.

http://www.goldseek.com/news/2018/6-5rw/image001.png

http://www.goldseek.com/news/2018/6-5rw/image002.png

See the charts provided in this article in an expandable format.

Now, let's take a look at the 15-minute chart again for an update.

Unfortunately, ethereum, while it started in a 5 wave move off the lows, it did not hold key support for an impulsive third wave. So, as of Monday morning I am tracking the pattern as a diagonal, with the expectation that we have another high over Sunday night’s high at  $628.

If we break down below $538, the probability is we’ll see the May 28 low give way.

Bitcoin did not get as far as ethereum did before dropping Sunday night, so it may be called a 1-2,i-ii, where ii is the second wave in a minor third wave. It is immediately bullish as long as $7375 holds.

http://www.goldseek.com/news/2018/6-5rw/image003.png

http://www.goldseek.com/news/2018/6-5rw/image004.png

Note the green line on the charts. This is a key level on both, where we retrace .618 of the drop from the May highs. If impulsive over those levels, $8720 in bitcoin and $685 in ethereum, we'll have the strongest confirmation we can have without a direct breakout.

I currently consider sentiment to be very doubtful to apathetic. The apathetic holder feels shocked that they’ve seen such a drawdown but feels trapped and certainly doesn’t have the money to buy more. The doubtful holder believes bitcoin is in a large-scale correction and will remain in it for many months.

One trader I follow called for a 1.5-year correction. Some analysts I watch are calling for bitcoin to go below $5000. While I can see that price level possible, I cannot see it as probable at this time. Granted, if the key levels I’m watching and call out above, actually break, I will look down. And, those levels are quite tight to price here, so we have an early warning.

It seems, anecdotally, that we have sentiment conditions ripe for a larger rally to begin. But price must prove.

Conclusion

In short, so far price has held over the bottoms struck on May 28. We are now tracking nominally higher support levels in both ethereum and bitcoin to serve as an early warning of failure. As long as support levels hold, we see the next degree third wave as ready to start.

See the charts provided in this article in an expandable format. 

Ryan Wilday is a cryptocurrency analyst at ElliottWaveTrader.net, where he hosts the Cryptocurrency Trading premium subscription service.

 


| Digg This Article
 -- Published: Tuesday, 5 June 2018 | E-Mail  | Print  | Source: GoldSeek.com

comments powered by Disqus



 



Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to GoldSeek.com

 news.goldseek.com >> Story

E-mail Page  | Print  | Disclaimer 


© 1995 - 2019



GoldSeek.com Supports Kiva.org

© GoldSeek.com, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of GoldSeek.com and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on GoldSeek.com. This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer


Map

The views contained here may not represent the views of GoldSeek.com, Gold Seek LLC, its affiliates or advertisers. GoldSeek.com, Gold Seek LLC makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of GoldSeek.com, Gold Seek LLC, is strictly prohibited. In no event shall GoldSeek.com, Gold Seek LLC or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.