Technical Breakdown - 21st August
Today is the 21st August 2020, let’s get another daily technical breakdown published and talk about some of the recent moves we have seen on both the LTF and HTF charts. I hope this newsletter/article helps to explain in more detail my current bias for PA and where I think we could be heading over the coming days, weeks, and months! Enjoy.
First things first, I just want to cover ETH/USD on a low timeframe as it seems we are currently seeing a pullback and I have received a few messages over the past few hours about what is happening and if it is currently the time to start closing long positions. Firstly, let me just say that the time to take profits is at resistance and now at support, trying to close out a position between $385/$395 would be pretty clumsy especially as we are going into the weekend as weekend usually like to kick off with volatility and liquidations.
As I said on my previous newsletters/articles, taking a small percentage of profits off the table above $420 was a solid idea, it allows for both the mental side of trading to be at ease and also for you to keep an overall net positive position in the market. A daily close below $395 would be pretty brutal for overall momentum and honestly, I would probably expect the price to fall back down to around $380 if we see a bearish daily close tonight.
Overall this pullback is healthy, I have said it over and over again over the past few weeks, a pullback was bound to happen, this market has seen some crazy upside over the past four months now and there is only so much bullish power that can keep us running up. A low timeframe pullback is nothing to worry about in the macro scale of things, HTF momentum still seems to be bullish and unless we see an awful weekly and monthly close the market still seems generally fine. It will be good to see if our next levels of support at either $385 and then $365 will hold up well over the weekend, this is the priority right now.
BTC/USD looking very similar to Ethereum right now pretty brutal low timeframe pullback, as you can see already, over the past few days we saw that $11,500 was tested previously and was defended, but on the retest of $12,000 we confirmed $12,000 had been flipped into a fresh resistance level (previously support) which is not what you want to see to remain bullish LTF. Currently, it seems as though bulls are fighting to defend $11,500 with everything they have and if this is just weekend volatility then I really want to see this weekly close back above $12,000. For the time being, I will keep an open mind and suggest that we could see a further pullback to around the mid $10,000's before we start to see price consolidate and for bulls to start slowly buying back into their positions.
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