Ethereum moves and prognostications for USD and BTC after THE BIG DIP on February 2, 2018.
Welcome to Blind Swallowing Thing – the Bloody Groundhog Day edition. I’m Mr. Thing, and I’ll be the host today for the buy the bloody dip segment of the show. Before we get started, remember this is not financial advice.
Everyone wants to make a killing in any market. That’s why we speculate and trade. But to do that you have to weather the storms. You also have to actively look for opportunities. Sometimes those opportunities are staring you in the face. Other times, they peak under the blanket you’ve been hiding under while crying because the market just collapsed 60%.
This is one of those peak-under-the-blankets moments.
Quick context – BTC dropped below $8K early this morning and bounced off the daily 200EMA. It is coming back up and now sits around $8,500. But that is a far cry from the $19,000+ it was just 45 days ago. Clearly FOMO’ing into that top was a bad idea. We didn’t do it, and we hope our readers didn’t either. But it still is hard watching your BTC/USD balance drop significantly even if you’re not selling anytime soon.
So let’s get to that scary opportunity, shall we? We mentioned last night that we have been moving our longer term holds to be more balanced on the ETH side after holding BTC hard through the fall. This has been a good strategy so far, and we look to do more of the same in the near future. Which is why we were semi pleased to have some low bids for ETH/USD get hit early this morning. We had placed these awhile back, and honestly forgotten they were out there. Lucky for us, the exchanges didn’t. Why lucky? Well, let’s take a look at the charts.
Here is ETH/USD on the 4hr. Notice the clear bullish divergence in the RSI. Coupled with that spike in bullish volume we feel pretty solid about this buy.
On the ETH/BTC charts – they are a bit less optimistic that the worst is over. RSI is clearly showing a hidden bear div with a lower high even though we had a higher high in price and while the low on the RSI is not quite as low as the previous low around the 17th of January, the price is much higher. So we’re reserving our BTC at the moment. But watchful waiting is the name of the game.
On a side note when we pulled up the drawn objects on the ETH/USD chart we discovered an old Fib Time Zone which we had drawn back when ETH starting consolidating from its early December moves. It wasn’t really helpful. But was interesting that the further out the fib sequence got, the better it was at hitting major moves in the chart.
We have always liked the FA for ETH and the TA seems like a hidden opportunity to come in out of the storm. We expect to make some more moves soon.
Happy Groundhog Day. Let’s hope for an early spring for the crypto markets.
And remember – Don’t Drive Angry