While everyone is talking about Brexit the market to play this week has been the cryptocurrency market. On tradingview.com I blog Ichimoku supports and resistances and wanted to cross post a review of this week’s action.
Three months ago in March I called for the end of Bitcoin’s long consolidation period here. Since the call Bitcoin moved up a whopping 92%. Last week I called the top at around 780 based on the Weekly timeframe:
Among fellow BTC traders I privately speculated that the pullback could take a few weeks. It only took one in this extremely volatile market. The short was at the second hit of the high around 776 with a tight stop above. The trade reached my target based on the Daily and is now continuing down to test the Weekly Ichimoku supports.
At the same time during the week I made a call on a new altcoin Ethereum. Ethereum experienced a volatile reaction when an exploit was discovered in their blockchain code and coins were stolen. The move brought price down to a clear support on the Daily which was a buying opportunity.
In addition to this LTCUSD had an even more bearish reaction. This is the altcoin where I have said publicly my long term target is $0.00. Bearish moves in Bitcoin create exaggerated moves in Litecoin making it a great hedge.