ONE44 Analytics where the analysis is concise and to the point
Our goal is to not only give you actionable information, but to help you understand why we think this is happening based on pure price analysis with Fibonacci retracements and Gann squares.
The overnight low was just above our long term swing point of 42250. This level is of major importance to the long term trend. Failing to hold 38.2% of the ATH and 2018 low should have the same effect as it did in 2018 when it took out 38.2% of the 2019 hgh (ATH at that time) and that ended the bull market until 2021.
We know that when using the ONE44 Fibonacci rules and guidelines that once 38.2% is taken out the next target becomes 61.8% of the same move and we also know that holding 38.2% should send them to new highs.
Provided they hold 42250 the long term target is new ATH's, however as always we will watch all of the retracements on any rally to see just how strong, or weak the market is. The first real test on any rally would be 38.2% back to the ATH, this is 50900, not getting above 47600 would be a very negative sign, this is 23.6% back to the ATH and a major Gann square.
On both the Ethereum and Bitcoin charts you can use the major Gann squares as support and resistance, they are marked by the yellow horizontal lines.
The second set of charts are Gann squares on an Hourly basis and can be used as short term support and resistance.
You can find the short term Gann square charts on Litecoin, Ripple and Dogecoin on our website as well.
Ethereum is in a stronger position then Bitcoin.
The overnight low traded well below 23.6% back to the 2018 low and the 3344.00 major Gann square, it also traded below 38.2% (3210.00) back to the 3/1/21 low. It held above the 3119.00 major Gann square and is now back above 3344.00, this is and was our short term swing point.
The overnight rally has already taken it through 23.6% of the break and our key level to test this market is 38.2% at 3610.00. Not getting above this level should send it back to test the lows again and even down to the long term swing point of 2730.00. Provided they can take 3610.00 out, look for new ATH's.
You can get all the rules and guidelines to the Fibonacci retracements on our website.
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