Analysis: Monday Morning Massacre for Ethereum

Bitcoin

Bitcoin finally succumbed to the selling pressure we have been forecasting for the past few days.  All things considered, the selling has been muted and reasonable, far more so than I expected.   This sentiment may be premature of course.  There could be another shoe waiting to drop.  But I note that a 5th arc on a 15 minute chart has (so far) stopped the decline, so I lost my bearishness  at the arc. I sent a tweet at the time.

Ethereum

Editor’s update: Ethereum’s flash crash only happened at “Kraken” due to a DDoS-attack.

Ethereum was a massacre.  The selling took out every leveraged trader I am sure.  Prices took a nosedive to $30 in a manner I briefly described in yesterday’s column. Short-selling, stop-running, margin calls and panic crushed a lot of people. I hope my leveraged readers were smart enough to take my advice and lighten their leveraged positions yesterday.  If not, they saw their dreams dashed a few minutes ago.

I believe the low is in at $30, but there could be another show left to drop.  It seems unlikely though, because the margin calls have already closed everyone out and the stops are cleared also.

Litecoin

Litecoin hit our target of $30 and has sold off a bit since then.  Given the selling going on today, it may still correct pretty hard as well.  Beware…

ETCUSD

We suggested that ETC might correct to the $5.50 area. At this writing we have a low of $5.17.  It seems like a low might be in, but it is hard to say.  The bears are in full control this morning in a coordinated attack across the spectrum.   It’s hard to say where any of it will end.

Overall, it’s a good morning to be either  in cash, or short.  There will be some great buying opportunities soon, but be careful!

 

 

Remember:  The author is a trader who is subject to all manner of error in judgment.  Do your own research, and be prepared to take full responsibility for your own trades.

Author:
Jim has an MBA from the University of Southern California. He has had a long career in both Corporate Finance and IT. Along the way he discovered that trading was a vehicle with great promise, but struggled for a long time without a mentor. After having been knocked down many times and having struggled to get back up, he had an epiphany and realized that geometry was a solution. He shares his experience here. If you do well as a result of suggestions made here, feel free to say thank you :) BTC: 1FUq3GB1Q8zz2JpuBr7YHzVBKnaWoxgmya Follow him on Twitter (@jimfred1276) or email him at jimfred1276 at gmail.