***Disclaimer***
Please keep in mind: The risk of loss in trading can be substantial. I am not offering financial advice nor am I telling you how or what you should be trading. I will simply be applying charting techniques I have learnt over the years. If, of your own free will, you decide to trade never trade with money you cannot afford to lose and if you do trade, try to spread out your trades on multiple assets. A diverse portfolio is much better than only holding a single asset.
***End of Disclaimer***
Hi fellow Steemians, fellow investors, traders and crypto enthusiasts.
Lets take a look at what is happening with the crptocurrencies which we have identified have a certain chart pattern. Currently we have identified two candidates, a head and shoulders pattern on BTC/USD daily chart and a bullish pennant on USD/XRP daily chart.
So lets dive right in.
Bitcoin/US Dollar (BTC/USD) - Daily Chart - Head and Shoulders Pattern
Since the last update on BTC/USD there has not been much change. As yet the head and shoulders pattern has not given any good indication of direction either way. Both the current and the previous candle sticks show that the price has been floating between the resistance line created by the high made by the right shoulder (marked with a blue horizontal line) and the support (pink rising line). Uncertainty at it's best.
Will it fail or play through? Now only time will tell.
Personal thoughts on the current chart
As the chart currently stands I would neither be bullish nor bearish. Price can go either way in reality and I always keep in mind that crypto trading is a new market. I would need to see a break of either of the support or resistance level shown in the chart above. Would I be looking at selling if this happens? Not really. I would more see the possible low's as a good entry into the market. The overall trend is bullish and the trend is your friend.
If you would like to see the initial in-depth analysis of this pattern check out my previous post Crypto Charts Analysis #1 Bitcoin 4th July 2017.
US Dollar/Ripple (USD/XRP) - Daily Chart - Bullish Pennant
USD/XRP seems like it has a has quite the price squeeze. Prices are barely moving throughout the day as can easily be seen from the past four candlesticks in the above chart. Where it will go is anyone's guess!
Personal thoughts on the current chart
I would like for many things to happen and hope for a move one way or the other but that would mean trading emotionally, and that is how you lose money. I have the same thoughts as with BTC/USD. There has been no break of the pennant formation in either direction. The break either way would help me decide better on a position. I will add one more thing. When checking out this type of pattern there is a good possibility of seeing a break downward, I would say maybe between 0.20-0.24, and then a swing upward so do not panic if this happens. The overall trend is bullish so your safest trades would be while buying.
If you would like to see the initial analysis of this pattern check out my previous post Crypto Charts Analysis #2 Ripple (XRP) 5th July 2017.
So fellow Steemians, investors, traders and crypto enthusiasts what is your take on where the price of USD/XRP and BTC/USD is going? Do you agree or disagree with this analysis or do you have your take on what the chart is showing ?
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Thank you.
Resources
Coinigy - Online chart tools for Cryptocurrencies - Affiliate link
Coin Market Cap - Excellent resource with a loads of cypto data