Bitcoin crawls towards the all time high at 64600/900 in severely overbought conditions. Obviously this is key to direction. Failure to beat this level leaves an important double top sell signal in severely overbought conditions. In theory this would trigger an epic crash to 26000, 16000 and even lower in the months ahead. At this stage it seems impossible to imagine.
Ripple bottomed exactly at the most important support of the week at 10250/10200. We are holding first support at 10750/700 keeping bulls in control for today (but it is a long wait for the bounce).
Ethereum STILL holding important trend line resistance at 3870/3900 keeping the outlook negative. However this has held and triggered significant losses to what is now the important 3700/3600.
Today’s Analysis
Bitcoin failure to beat the all time high at 64600/900 leaves the biggest double top in crypto history. It does not guarantee a crash but could certainly trigger significant losses in the weeks ahead. If you are trying shorts at the all time high, looking for a similar negative reaction to the one in April we initially target 63000/62950, perhaps as far as 61300/61000. Further losses target 59500/59000.
Ripple longs at 10250/10200 are working. Holding first support at 10700/750 today allows a recovery to 11000, perhaps as far as 11400. Expect strong resistance at 12020/12100. A break higher can target 11300/11400. Most important support of the week at 10250/10200. Holding here keeps bulls in control.
A break below here is an important sell signal initially targeting less we should target 8600. This may hold on the first test and we could even see a decent bounce. However I would be a seller at resistance on this bounce, expecting the support to break vent for another significant sell signal.
Ethereum rejects important trend line resistance at 3870/3900 to bottom exactly at first support at 3690/50 so far this week. Obviously we watch these 2 levels again today. Be ready to sell a break below 3600 targeting 3480/3450, perhaps as far as 3350/3300. Further losses are certainly possible as far as support at 3050/3000. Bulls need to clear the September high at 4000/4030 for the next buy signal and it could be a straight run to the all time high at 4355/85.
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