BBOD Research: Ethereum Classic (ETC)

Technical Pick: Ethereum Classic (ETC)

Bitcoin remains in a tight range since the big-volume break of the $7200 crucial support area seen over the weekend. Despite this, yesterday saw an attempt at a rally off of the lows, although it was to little avail. Buy-side volume was weak compared to sell-side volume and several indicators are suggesting further downside. For instance, the RSI on the 1-hour has a slight bear divergence whilst the MACD on the daily has just undergone a bearish crossover. Thus, a bounce from here is possible but it will likely fail at the prior major resistance of $7200. If Bitcoin is to fall once more, then the next level of support will be around the $6500 level established during February and April. Any further than this and the bearish sentiment will likely cause a major market washout. Ultimately, this may be what the market needs before another notable bull run, the sentiment in the air appears incredibly confused and individuals are likely looking for solid confirmation of a low before taking considerable positions. Opportunities in this market are few and far between, and any positions should always be taken with extreme caution, especially if you aren’t looking for a quick trade. News driven pumps are often worthless, unless you buy the rumour and sell the news. Despite this, Coinbase have just announced that Ethereum Classic (ETC) will be added to the platform in the coming months. Such news is significant with the amount of traffic the site receives and so this may pose as a good opportunity to buy long-term. Technically, ETC has seen a huge volume 19% pump today since this news was announced. The sensible move here is not to FOMO into a position, instead wait for a pullback to the 10 EMA moving average on a smaller term timeframe, ideally the 4-hour. Alternatively, a more conservative move would be to wait for a break of the 0.0026 support level, here a long-term double bottom would be confirmed and a break of the neckline would be bullish confirmation. From there, the next major resistance level is 0.0033 Satoshis. Even applying the cautious approach this could lead to a 25% increase in price relative to Bitcoin. As always, remain cautious in such erratic markets with tight stop losses in place, but be sure to add ETC to your watchlist.

Source: Trading View