What a start into the New Year!
BTC crossed $1000 without any hesitation. With this we have the official break out in the crypto:
Though we expected the intermediate top to be built below $1000, well, the market has different opinion on it..
To understand better our “sentiment” approach to the crypto markets let us check what we said back in Mai 2016 about Bitcoin:
“…The sentiment is amazingly pessimistic at the moment. For instance, is anyone who is reading this blog, consider buying BTC? No? Why? Too many bad news for poor bitcoin?”
Negative sentiment was one of the reason for the author to keep doing bullish calls on BTC throughout the year (except the correction part in July, which we also got correctly).
Now we are about to reach the opposite extreme. To illustrate it..How many of you consider the possibility for BTC to drop to $800? And to $500? Well, we believe there are still some, but definitely much less than just few weeks ago. At the moment when no one believes anymore that we will ever see $800, this is exactly what will happen, drop down to around this level. The level itself is based on Elliott Waves patterns, but the price and time when this drop will start will be determined by the crowd sentiment.
We will publish the BTC chart in one of the next updates, now let us come back to ETH.
As expected in our last letter, ETHBTC did make the new low, though it was not as deep as we thought. “Only” 0.0073 ETHBTC was reached. 0.006 would be better from the pattern point of view, but we can’t demand from the market too much.. For the moment we leave the possibility for ETHBTC to stay depressed and may be to make one more low.
For ETH in Fiat (USD or EUR) however, the picture is quite different:After decisively breaking the trend-line, we very likely have finally the trend change. There is a chance for ETH to come down and do the last “kiss the trend-line and go”. The next goal, however, is around 11 in EUR and 13 in USD.
have a nice start into the year too !