I hope no one was caught chasing BTC/USD prices higher or no one was caught chasing prices lower recently as I did identify the trading range we are about to break out from (be patient !) or you could’ve played the range. It is best to wait though (in my opinion at least as the range tightens and a breakout is inevitable.
Today I will have a look at ETH/BTC as requested by one of our followers.
What immediately jumps out is that pesky triangular pattern yet again as bulls and bears decide what to do. Once again triangular patterns have no directional bias whatsoever so be careful chasing prices. I also have no overarching directional bias for this pair right now. However, let’s do something different with this chart :
If we look at the second chart carefully we can see that the price has found support at the 50% retracement from the most significant lows to the all time highs. Also, after breaking out of the bullish uptrend channel (blue arrow) we have traded in a range. The price has been attracted to the 61.8% as highlighted by the yellow circle/ eclipse. This is normal given where we found support. In this range we are making higher lows but conversely we are making lower highs so be careful if playing this range. I.E. while above the 61.8% we are bullish and while below we are bearish. Please don’t use the second chart without considering the first one since in trading we wish good risk reward setups.
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