Cryptocurrency Update

While everyone is talking about Brexit the market to play this week has been the cryptocurrency market.  On 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:

780 top call


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.

Ichimoku weekly 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.