An analysis into Bitcoin and Ethereum current trends
We are currently seeing Bitcoin bounce back from yesterday's bearish trend. There was an inverse head and shoulders formed yesterday and increasingly the inverse head and shoulders was formed in a bigger head and shoulders pattern. The target at the point of that breakout is at the $40,700 level. This is the bullish target at the moment.
Taking a look at the resistance level, there is an important resistance level at the $40,300 level which is a closer target, I would say than the previous target. A much closer approximation would be $39,880. But if we breakout below and see a reversal, we could go lower and of course, the previous scenario is negated.
On the EMA ribbon, the Bitcoin dipped down to the $30k level but then we saw a reversal where the Bulls again took charge. It's a good sign that shows that the bears weren't able to push bitcoin into a bigger correction now. If we do break back above the $38k level, it could be a new signal that shows that Bitcoin is about to reach a new all-time high. I am not saying that this scenario is going to play out very soon for sure, because there are a few targets that need to be reached and broken before this scenario plays out but it is a possibility.
On the 4-hour time frame, take note that when we see the Bitcoin break below the 4-hour ribbon usually it means a correction. Right now we are testing the ribbon and if we break above it, it means a bullish scenario in the short term and the reverse is the case if we go down.
On the one-hour ribbon, if we break the one-hour ribbon and see the one-hour candle go up then this could be a good short position. Because if we break the on-hour ribbon, we could see an increase back to $39,000. It's not guaranteed, but there is a possibility that it could play out that way.
Ethereum is also seeing the same scenario play out. It is really testing the ribbon and we are in a crucial moment. On the one hour ribbon, we are currently seeing the Bulls trying to take charge. If they do then we could see ethereum break out to the upside. We could see a rise to $1200 or more. In the short term though it is looking healthy.
