Bitcoin –" if you have followed me on social media since 11th May you will know that I predicted the crypto crash, after spotting a 2 month head & shoulders reversal pattern, which completed on the 17th May for a clear sell signal.
Ripple has crashed to very important 6 month trend line & 200 day moving average support at 0.7040-0.6558.
This is the best chance of an end to the crash.
Ethereum has collapsed to retest the 14 months 61.8% Fibonacci support at 1728. In fact, as I write we bottomed exactly at 1731. Quite incredible how accurate technical analysis can be in crypto markets.
This is the last line of defence for bulls with a potential double bottom buy signal –If you have been waiting for an excellent buying opportunity then this is worth a gamble.
Daily analysis
Bitcoin retests the 30066 low, just above my ultimate target for the head & shoulders sell signal at 27500/27000. Although I do not see support at 30000 it is obviously a psychological number – markets can gravitate towards large round numbers. A double bottom here cannot be ignore, especially when Ripple & Ethereum test very important longer-term supports here & now.
Brave bulls can try longs 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.
Longs at 31100/30000 can target 33500/34000 & 35500/36000. First resistance at 37000/38000 is the main challenge for bulls today. A break above 38500 signals further gains to 40500/41500.
Ripple crashed to very important 6-month trend line & 200-day moving average support at 0.7040-0.6558. 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.
Longs at 0.7040-0.6558 target 0.7500 & 0.8000/8100. A break above 0.8300 signals further gains to 0.8950/0.9000. Expect very strong resistance at 0.9200/9450.
Ethereum tests important 61.8% Fibonacci support at 1728 for a potential double bottom buy signal. Brave bulls can try longs here & can also average down, buying a little more at the 200 day moving average at 1550. 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 & risks a slide to 1300/1250. Although the decline may pause here I do not see this as a strong support level & longs would be extremely risky.
Longs at 1750/1550 initially target 2000/2100. Expect strong resistance at 2300/2400. We could reverse here & a retest of 1750/1550 cannot be ruled out. Scalpers can try shorts (initially targeting 2200/2100) with stops above 2500. A break above 2500 is far more positive I see this as a buy signal targeting 2600 & 2750/2800.
