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Bitcoin Bounces Up as Ethereum, NEO Look For Troubles: Crypto Price Analysis, Aug. 31, 2018

Fri, 08/31/2018 - 09:34
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Vaido Veek
Like we had planned- pullback happened and the bounce level was precise!
Bitcoin Bounces Up as Ethereum, NEO Look For Troubles: Crypto Price Analysis, Aug. 31, 2018
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*** Please note the analysis below is not investment advice. The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of U.Today. Every investment and trading move involves risk, you should conduct your own research when making a decision.

BTC possible targets

Yesterday, after we posted- we could make a pullback and you already know where to enter the trade ($6,709-$6,800) if the pullback occurs. It happened, and we also got a bounce upwards exactly from $6,800. The current price is $7,000 and we are our first target point where we could take out some partial profits because if the market wants to go lower then here is the decent place where it could turn around because in this area it makes a lower high on the price structure, but if we start to go higher than our next targets would be:

2. Around $7,300- strong and historically worked levels!

3. Around $7,500- final target:

* Fibonacci pulled from July 24- Aug. 14

* Round number

* Trendline since May 5th

* Fibonacci extensions (entry point Fibonacci's)

* Round number and Fibonacci retracement level are just SO identical!

Let's see how the market and the price reacts on these price levels.

Ethereum managed to stay ‘healthy’ and it got a bounce from our mentioned level!

Currently, on the Ethereum chart, we could see that it stayed "healthy.” Like we expected yesterday we have to bounce upwards around $270-$275 if the price structure wants to stay bullish and exactly from this area we got our bounce and we have made a clean higher low (HL) on the chart. The bounce was supported with a perfect Fibonacci retracement level 62 percent and a blue line which means the strong support area.

Now our nearest resistance is this triangle upper trendline and round number $300 crossing area! Those crossing areas area always hard to beat but if we see at least a four-hour candle close above the $300 then it could be mean that we make another leg upwards and if Ethereum wants to make a higher high (HH) then we have to see a candle close around $330.

NEO (NEO/USD) shows some mixed patterns!

At the moment, NEO is grinding upwards in the rising channel, clean touches from trendline and also clearly visible higher highs(HH) and higher low(HL).

Like all the crypto market made a little pullback and so as NEO.  Price falls below the round number area which is currently $20. The pullback finds the end from a 50 percent Fibonacci retracement level, old resistance area becomes a support area and it was close to the trendline.

Currently, we fight with a round number $20 which works as a resistance, on the four-hour chart we are above the 50 and 100EMA and they are pointed upwards, which is a good sign.

To confirm bullishness then we have to make a new higher high and break above the 200EMA then we have almost a clean run to the next resistances $27.03 (June low) and the main resistance around $30. The main resistance consists of two monthly levels July low and Aug. high + we have there a trendline which is pulled from four-chart candle bodies and pulled from July 5 -Aug. 18.

To confirm bearishness on the NEO/USD chart:

"NEO Shows some mixed patterns"- it means that we are in the bearish chart pattern "Bear Flag" and if you draw some lines differently (no mistake) then it could be also a continuation pattern called "Rising Wedge.” And if we get a close below the gray area then it would be an easy confirmation. We have made a lower low, we have a break below the channel (rising wedge) bottom trendline and the trend is your friend.

Hopefully, this helps you out a little bit to confirm your own analysis.

Have a nice day!

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About the author

Vaido Veek hopes to become a leading voice in technical analysis by educating people about how the perfect TA  should look like. He has over 5 years of charting experience and loves to solve the patterns that   they show us. His slogan is "keep it simple"!