The title of this report sounds like some kind of war, but man what a week! The crown reversal in Bitcoin I was anticipating for a few weeks was invalidated with a close above the resistance zone I was pointing out. In part, I was anticipating this scenario based on the technicals we've seen in the altcoin markets, and not just in the BTCUSD pair. The dances between Bitcoin and the alt-markets (in USD) were synchronized for a while, but now they are dancing to different tunes. We had massive selloffs everywhere while Bitcoin had the big breakout. It was a short squeeze caused by the impending forks... and everything paired against BTC fell victim. It's been a nice lesson (we made money, too!) in the ways in which fundamentals matter sometimes in the very short term, not just the technicals. So let's get to it...

(Because its a warm sunny day over here on the Canadian east coast, I'm gonna keep things pretty brief in this Friday report.)

Bitcoin

The big breakout happened, so we bought it. 

For weeks I've been talking about how a break of the previous all-time high is a massive buy signal. Then we created an hourly plan and MAX profit taking target. Perhaps I should be using the 1MIN or 5MIN charts next time...lol

Success... we hit our target in the hourly chart, now we have the daily MAX TP target of $6207 remaining.

Its important to take a step back and remember that what we see on the chart is massive irrational exuberance. I suspect this is hoarding for the hard forks as everyone is trying to get "free" coins. The problem is, unlike during the Bitcoin Cash fork, this will likely get very messy as traders scramble to take profit on their newly minted instruments. They learned this by looking back at what smart traders did with Bitcoin Cash. This time, however, you have money flowing not only from Bitcoin to the newly created asset, you have USD flowing from the altcoins that have been getting sold off over the last few weeks. Its gonna be one big pump and dump, the entire market included. At the rates of upward and downward thrusts, stop-losses don't work so well. The BOTTOM LINE IS THERE WILL BE A LOT OF LOSERS

Anyway, things to look out for on the way to our daily target is the current crown reversal area and the two target boxes that will put up a fight as they are likely places where profit taking is likely to occur. Of course, you will have amateur traders picking up coins at those levels, so we'll see what happens. Stop loss is currently at $5300.

Updates can be found here: https://www.tradingview.com/chart/BTCUSD/qvhdpq1g-Bitcoin-Structural-Wave-5-Foundations-For-A-Crown-Reversal/

OmiseGO

We've been shorting OmiseGo for a few weeks now with success. Earlier this week we closed a trade as we broke out of the descending channel.

At the same time we hit a mid-range target in the other chart, so it made sense to close it for now.

Then, we opened a nice long entry as we broke out of the descending channels in both charts...

We modified our target range and closed the trade..

AND...perhaps crashed the market :P

Since then, we have started a new thread and have identified some patterns to trade:

Currently I have a short trade open after a few stubborn attempts...let's see what happens.

Updates can be found here: https://www.tradingview.com/chart/OMGUSD/6bIi1luh-Bullish-Flag-or-Falling-Wedge-Catching-Structural-Wave-3/

TenX Pay Token

One of my subs on Trading View asked for some insight into TenX token. So we took a look but did not open any trades as its on an exchange were I'm not comfortable with my millions.

The long box was too resistant, so it ended in tears...

Updates can be found here: https://www.tradingview.com/chart/PAYBTC/S9vq1xPF-Collapse-or-Breakout-TenX-Pay-Consolidation/

Bitcoin Cash

Remember the short trade? It went very well as it hit our MIN TP level :)

Since then, however, things have been getting crushed sideways... it's not clear which side is gonna win this one...but I'm still thinking short trade until we breach the bigger descending channel.

Updates can be found at the old thread: https://www.tradingview.com/chart/BCHUSD/fBDg603h-Bitcoin-Cash-Consolidation-New-Low-or-Structural-Wave-5/

Ripple

We opened a short trade as it started crashing... but the volatility has made things pretty difficult to manage.

For now, here's where we are. Let's see how things play out....

Updates can be found here: https://www.tradingview.com/chart/XRPUSD/YTI8OOcb-Ripple-Consolidation-Deep-Correction-or-Structural-Wave-5/

Other Instruments Worth Mention

Neo and ZCash fell victims to the short squeeze, not soon after their rallies, you can check my reports on these on Trading View...

Neo: https://www.tradingview.com/chart/NEOBTC/vSdRWP3v-NEO-Complex-Correction/

ZCash: https://www.tradingview.com/chart/ZECUSD/WNAZqcoK-ZCash-Consolidation-Continues/

Ethereum has staged a bit of a rally in the USD market, but if you look at the true pattern in the ETHBTC chart you'll see continued weakness: https://www.tradingview.com/chart/ETHBTC/zWIoWwcI-Finding-the-End-of-Consolidation-Wave-A/

I've been talking to traders about Litecoin's pattern against Bitcoin, it should be watched if you are interested or hodling this instrument: https://www.tradingview.com/chart/LTCBTC/gqsY2N3Q-LTC-Descending-Wave-5-Heading-Near-Zero-BTC-Value/

Lastly, Ethereum Classic is approaching some interesting support levels, which should be watched just in case we get a long opportunity: https://www.tradingview.com/chart/ETCBTC/KH3hHt7z-Ethereum-Classic-Big-Head-and-Shoulders/

That's it for now, enjoy the weekend and GLWT!
- Erik