Bitcoin & Ethereum - Be Careful - Technical Analysis

Be Careful

For Bitcoin, as well as Ethereum, it is still important to be careful. The bulls still have not secured the upward trend and the alternative scenarios are with probabilities of 40% and 45% to be considered quite likely. Additionally, the indicators also seem to hint at a more comprehensive correction. However, we want to stress that this does not alter our overall long-term orientation in this market. Instead, we believe that such a correction would positively affect the market and foster a more vital upward move afterward. Needless to say that this would open the door for new entry chances.

three round gold-colored Bitcoin tokens

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Since it's low at $43800, the bulls could push upwards and extend a preliminary high. Problematic, however, is that this could well be interpreted as a 3-step movement as well, which would mean that this is a correction. In this case, we would face a more comprehensive correction with some preliminary lows. If the bulls are to take over again, they will need to rush to establish a stronghold above the threshold of $52,000. If they are able to do so, we can label the current structure as a 1,2-Setup. Such a movement would function as the cornerstone for wave v in orange. Our preliminary expectation is also that we will experience a further rise, as long as the price for Bitcoin stays above $43,802. However, the alternative correction still gets a very high probability of 45%. In the second chart, we have outlined the possible alternative correction. Here, we see that wave [3] in green is completed and would run into an area between $35,000 and $30,000. We already have indicated a trading zone there. If the correction turns out to become a reality, we will use this zone to build up long positions further. Once we approach the trading area, we would also specify the coordinates further. In any case, with the superordinate wave [5] in green, we will attack new highs either way.

Bitcoin Technical Analysis

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