Cryptocurreny Update

Published 08/03/2021, 05:58 AM

Bitcoin shot higher to 41500/42500 where a high for the day was expected. We topped exactly here throughout the weekend. Shorts worked on the slide to support at 39800/300. Longs here have been stopped below 38500.

The outlook turns negative and we are likely to have resumed the bear trend.

Ripple shorts at strong resistance a little higher today at 7700/7750 worked perfectly. Outlook is negative in the medium term. 

Ethereum beat strong resistance at 2460/2500 for a buy signal initially targeting 2700/2750, but we topped exactly here and collapsed to first support at 2550/2500. I doubt this will hold for long.

Today’s Analysis

Bitcoin breaks support at 39800/300 for a sell signal targeting only minor support at 37500/100. While we may pause here, longs are risky. A break lower looks likely, eventually targeting 35950/750 and perhaps as far as 34400/34000. Gains are likely to be limited with strong resistance at 39400/800. Strong resistance again at 41500/42500.

Ripple shorts at strong resistance at 7700/50 target first support at 7170/7040. Although we bottomed exactly here as I write, a break lower looks likely eventually targeting 6950 & support at 6800/6750. Expect strong resistance at 7700/7750. Bulls will look for a break above 7800 for a medium term buy signal, initially targeting 8300 and then 8500/8700.

Ethereum tests first support at 2550/2500, but be ready to sell at a break below 2450 for 2330/2290 and 2220/00. Holding first support at 2550/2500 allows a recovery towards first resistance at 2700/2750. Highly unlikely, but if we continue higher, look for 2850 and the June high at 2890/99.

Disclaimer: No representation or warranty is made as to the accuracy or completeness of this information and opinions expressed may be subject to change without notice. Estimates and projections set forth herein are based on assumptions that may not be correct or otherwise realized. All reports and information are designed for information purposes only and neither the information contained herein nor any opinion expressed is deemed to constitute an offer or invitation to make an offer, to buy or sell any security or any option, futures or other related derivatives.

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