NOTE: REP….wow. We knew it was worth watching as a market indicator – but the entertainment value of watching THEM “moving price anywhere they want” has been an unexpected bonus. But REP could be giving us a clue that we can use NOW in our trading…..
We often say –there is always a bullish and bearish case — in market wrap yesterday we wrote:
On the other hand, CLOSE IS STILL WHAT MATTERS and they are making this look horrible early in the trading day, so stay alert, watch key crypto targets, and have a clear strategy to reenter ST/IT positions if your research calls for it closer to close tomorrow.
But the real takeaway from REP’s (and XRP’s) current roller coaster ride is this:
REP and XRP – (charts below) and STR/XLM – (not shown) are indicating the huge drop to the edge of the cliff was a stop run and we’re heading higher.
What makes us think that?
- REP made another new all time high with massive volume AND broke the “nowhere to hide”
- XRP got back on the bullish track with a new bullish pattern and breakout with volume.
IF REP and XRP have bottomed — is it only true for those cryptos? What about our key market indicators ETH and BTC?
ETH has a lot of bullish support and has always correlated with REP so for ETH we can say high prob if REP
BTC is trickier as it has not been bullish like ETH, but we are seeing a strong reaction up after testing the bottom of the “3 bears” pattern shown yesterday (and again below) — plus we say again we’ve never seen the crypto market move up strongly without BTC bullish or at least flat–so it’s moderate prob that the “all clear” signal from REP and XRP applies to BTC as well.
The bigger question: was that THE bottom?
We’re getting way ahead of ourselves but the current drop was so close to a huge market breakdown and is recovering so quickly that it does have signs of a transition to a new bullish wave. That would mean we’re POTENTIALLY on the way to BTC 25000 and god knows what sort of new highs in ETH and other cryptos like XRP and STR both of which have much higher targets…..
WARNING: This is just speculation about a meaningful bottom and the start of a true bullish wave at this time — but it’s something to watch VERY closely as it could impact ST/IT trading strategies
If that was THE bottom, we’ll know very soon–meanwhile ST REP and XRP say the
EDGE IS TO BULLS
So finding safe CLEARLY DEFINED trades in the current set up has a high prob of being profitable — HOWEVER — expect to use wide stop loss ranges as they are not just going to hand you the profits… and all of this bullish talk could be proven wrong by close today and we must STAY SAFE to stay in the trading game!
5 CHARTS – XBT futures are not on board yet–but they could be by close….
BTC and ETH charts from prior posts for reference
This site is for educational and entertainment purposes only and not in any way intended to be investment or trading advice. You are 100% responsible for your financial decisions at all times. It is highly recommended you DO NOT make any investment or trading decisions depending upon what you read on this blog/newsletter! All information presented (c) 2017 JBP cons, inc. All rights reserved.