Bitcoin—if you've been following me on social media since May 11, you will know that I predicted the crypto crash, after spotting a 2 month head & shoulders reversal pattern, which completed on May 17 for a clear sell signal.
Ripple crashed to the very important 6 month trend line and 200 day moving average support at 0.7040-0.6558
This is the best chance of an end to the crash.
Ethereum collapsed to retest the 14 month 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 defense 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.
Analysis
Bitcoin retested 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 and Ethereum test very important longer term supports here and 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 and 35500/36000.
First resistance at 37000/38000 is the main challenge for bulls. A break above 38500 signals further gains to 40500/41500.
Ripple crashed to the very important 6 month trend line and 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 and 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 and 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 tested the important 61.8% Fibonacci support at 1728 for a potential double bottom buy signal. Brave bulls can try longs here and 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 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 and 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 and 2750/2800.
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