Cryptocurrency Buy and Sell Signals (October 29th, 2019)

Bitcoin (BTCUSD)

The rally late last week in Bitcoin was halted against a collection of two primary objective downtrend angles. That is the current resistance zone that Bitcoin is facing. It has broken out above two interior and older downtrend angles at 9000 and 9400. 9400 is the angle where short term support is found. The future buy entry I am looking at is one of the best entries that I’ve seen on Bitcoin’s chart all year. If Bitcoin returns to $10,000, then double-top forms, an entry at $10200 would be a break of not just the double top at $10,000, but a break above the dominant downtrend angles. This would initiate and confirm a new trend this Point and Figure chart — the first bull trend Bitcoin has had since May 2019.

Ethereum (ETHUSD)

Ethereum has one heck of an expansive and wild chart. Ethereum is in a position very similar to what we looked on in Bitcoin’s chart: a significant collection of objective downtrend angles. There are four directly above where Ethereum’s current price level is at. Du Plessis’s work on Point and Figure stressed the importance of maintaining and observing when there are clusters of these trendlines in one zone. These angles represent a clear, persistent and robust conviction by bears to keep price from rising. However, there is one extremely bullish formation that can occur. If this current column of Xs moves to 195, then a triple top will form. Dahlquist and Kirkpatrick identified this as the most profitable pattern on a Point and Figure chart. An entry at 197.50 is a break of the triple top. Given the proximity of this triple top being right against this cluster of trendlines, any break above those trendlines would more than likely generate a violent and swift move higher. The short side of this trade is below the split double bottom at 160 (entry at 159.75).

Chainlink (LINKUSD)

Chainlink is currently showing an entry condition with a breakout above the double top at 2.80. The entry at 2.90 represents the first continuation setup since the prior pullback. Chainlink is one of the few altcoins that is presently in a bull market. The price action on Chainlink’s chart is exceptionally bullish, especially with the pullback confirm the break by stopping directly above the furthest downtrend angle. I have four primary profit targets based on the Fibonacci extension of this current swing. The first profit target is at the 38.2% level at 3.242. The second is the 50% Fibonacci level at 3.75 with the third at the 61.8% Fibonacci level at 4.25. The final profit target is a significant amount of price above at the 161.8% Fibonacci extension level near the 8.55 value area. The short side of this trade is a return to the 1.60 value area, creating a split triple bottom with an entry at 1.50 if 1.60 breaks.

Cardano (ADAUSD)

There is, perhaps, no single altcoin chart that is more bearish and almost silly looking as Cardano’s chart. It’s so bearish, and its decline has been so swift that you don’t even see the further downtrend angles on Cardano’s Point and Figure chart! There are some near-term bullish conditions though. This may seem hard to believe — and it’s kind of funny — but Cardano has never had a triple top form on its Point and Figure chart. Cardano has lost over -98% of its value from its all-time highs — so any break of the triple top that would form at $0.10 (entry at $0.11) has a high probability of creating, at the very least, a robust corrective move.

Originally published at on October 29, 2019.




Technical analyst, investor, trader, social distancing since before it was cool

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Jonathan Morgan

Jonathan Morgan

Technical analyst, investor, trader, social distancing since before it was cool

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