Crypto markets threw a nice head fake this week by rallying into resistance on a “positive” Consumer Price Index (CPI) report, before
Anyhow, breakouts from the falling wedge are likely to be capped at the descending trendline, while a breakdown of the pattern or drop below the lower support could see the price fall as low as $11,400. That’s all within the market consensus for most analysts.
As for Ether, like I covered in greater detail in last week’s Substack and newsletter, it’s still doing the bull flag thing: bouncing around between support and resistance and seeing breakouts capped at key moving averages and the descending trendline of its bull flag.
$2,000 remains the eventual target on the radar of most analysts, and downside to the $1,100 is far from shocking.
A dip under $1,000 is likely to raise eyebrows and draw the attention of those looking for more resolute shorts.
Ether price action is basically doing the same predictable thing as Bitcoin: nothing to see here, stick to the plan (whatever that might be for you). Similar to BTC, there’s also a divergence on Ether’s MACD and RSI — something worth keeping an eye on.
Litecoin update
Last week, I also put eyes on Litecoin (LTC) due to its upcoming network reward halving. While the price has retraced from its local top at $85, the uptrend remains intact, and on the daily timeframe, the GMMA indicator is still bright green.
The vertical black lines track LTC’s bullish momentum leading into halvings and the corrections that occur right after the halving occurs. For the time being, everything looks to be proceeding according to plan.
Of course, none of this is financial advice. Make sure you do your own research, calculate your risk, think about the worst-case scenarios, weigh your ROIs and take profit, and cut losses zones a few days before actually making a trade. Remember that 1:3 and 1:5 is the optimal risk-to-reward outcome one should be chasing after.
Ignore the short-term FUD and price action. Zoom out and build a strong thesis from that vantage point.
This newsletter was written by Big Smokey, the author of The Humble Pontificator Substack and resident newsletter author at Cointelegraph. Each Friday, Big Smokey writes market insights, trending how-tos, analyses and early-bird research on potential emerging trends within the crypto market.
The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
