Cryptocurrency Technical purchase and promote indicators: Bitcoin, Ethereum, Chainlink, Cardano
Important breakout zones for long and short occasions.
Bitcoin (BTCUSD) dot and figure chart.
The rally late last week in Bitcoin was halted against a collection of two primary objective downtrend angles. This is the current zone of resistance that Bitcoin is facing. It has broken out above two inner and older downtrend angles at 9000 and 9400. 9400 is the angle at which short term support is found. The future purchase entry that I am looking at is one of the best entries that I have seen on the Bitcoin table all year. If Bitcoin returns to $ 10,000, then an entry at $ 10200 would be a break not just of the double-top at $ 10,000, but a break above the prevailing downtrend angles. This would usher in and confirm a new trend in this dot and figure chart – the first bull trend Bitcoin had since May 2019.
Dot and figure diagram of Ethereum (ETHUSD).
Ethereum has a damn expansive and wild card. Ethereum is in a position very similar to that shown in the Bitcoin graph: a significant collection of objective downtrend angles. There are four right above Ethereum’s current price level. Du Plessis’s work on Point and Figure emphasized the importance of maintaining and observing when clusters of these trendlines are in a zone. These angles represent a clear, persistent, and robust bear conviction to keep prices from rising. However, there is an extremely bullish pattern that can appear. When this current column is moved from Xs to 195, a triple spike forms. Dahlquist and Kirkpatrick identified this as the most profitable pattern on a dot and figure chart. An entry at 197.50 is a fraction of the triple top. Given the proximity of this triple peak to this group of trendlines, a break above these trendlines would most likely result in a violent and rapid move upward. The short side of this trade is 160 below the split double bottom (entry at 159.75).
Chain link (LINKUSD)
Chainlink (LINKUSD) Point & Figure Chart.
Chainlink is currently showing an entry condition with a breakout above the double top at 2.80. The entry at 2.90 represents the first continuation setup since the previous pullback. Chainlink is one of the few altcoins currently in a bull market. The price action on the Chainlink chart is exceptionally bullish, especially when the pullback confirms the break by stopping just above the most distant downtrend angle. I have four primary profit targets based on the Fibonacci expansion of this current swing. The first profit target is 38.2% at 3.242. The second is the 50% Fibonacci level at 3.75, the third is the 61.8% Fibonacci level at 4.25. The ultimate profit target is a significant price above the Fibonacci expansion level of 161.8% near the 8.55 range. The short side of this trade is a return to the 1.60 range, creating a split triple bottom with an entry at 1.50 when 1.60 breaks.
Cardano (ADAUSD) point and figure diagram.
There may not be a single altcoin card that looks more bearish and almost silly than Cardano’s card. It’s so bearish and its decline has been so rapid that you don’t even see the further downtrend angles on Cardano’s dot and figure chart! There are some short-term bullish conditions, however. That might be hard to believe – and it’s kind of funny – but Cardano has never been in top form three times on his point and figure table. Cardano has lost more than -98% of its value from its all-time highs. Therefore, any break in the triple top that would form at $ 0.10 (entry at $ 0.11) has a high probability of causing at least one robust corrective move.
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