After a pull-back in most of the crypto markets, we are now eying up another entry signal for us to capitalise on for a high probability trade. ETC has retraced deep back into the territory of wave (1), around 76% of the total move, which provides us a very attractive area for entry. There is also support at this level from the long term support line. During the retracement we have been moving in a solid downwards channel of which we have hit the top channel line twice and now we have just hit the bottom channel line for the second time. Zooming in to the recent bearish pressure from the second channel top until now, we have formed a smaller channel which we have hit the bottom of for the third time. These two channels offer us clear targets. If we break upwards from both of the channels then this gives us enough reason to believe we have entered wave (3). We can enter a trade after confirmation that we have broke through the first channel and set our first target at the top of the larger channel (
~18%). The crossover of the 10- and 20- day moving averages will also confirm this move which seems imminent.
There is the possibility that we do not break through the smaller channel however I don’t think this is likely as BTC has already broke out of its short term channel and has created a strong double bottom. As most coins move with BTC, it depends heavily on whether BTC can uphold this reversal and continue to rise.
~18%). The crossover of the 10- and 20- day moving averages will also confirm this move which seems imminent.
There is the possibility that we do not break through the smaller channel however I don’t think this is likely as BTC has already broke out of its short term channel and has created a strong double bottom. As most coins move with BTC, it depends heavily on whether BTC can uphold this reversal and continue to rise.
