Buy Signals On Bitcoin and Ethereum Could Bring Sudden End To Sideways Trend
While the rest of the crypto market has been soaring, Bitcoin and Ethereum have been trending sideways. The tightening price action has led to boredom and record low volatility.
But a buy signal on each of these two most dominant crypto assets could lead to a sudden change in trend, and hopefully an end to this trading range.
Major Crypto Assets Trend Sideways While Smaller Altcoins Shine
The two largest cryptocurrencies by market cap have been the most stagnant of the bunch. Both Bitcoin and Ethereum have more resembled a stablecoin more so than their explosively volatile former selves.
The uncharacteristic sideways price action in these two assets pushed investors and traders to find opportunities in greener pastures.
Related Reading | Bitcoin Historical Volatility Approaching Zero Could Signal Blossoming Bull Trend
Elsewhere in the crypto market, Chainlink set a new all-time high and several DeFi tokens have skyrocketed as that bandwagon chugs along.
Nearly every major crypto asset had some positive movement, even long cryptocurrency market underperformers like Ripple’s XRP and Stellar’s XLM.
It’s only been Bitcoin and Ethereum, the two primary market movers and most dominant crypto assets, that have behaved in this manner.
All this could soon change now that a buy setup has appeared on today’s daily price chart on the two assets.
Imperfect TD 9 Triggers On Bitcoin and Ethereum Daily Price Charts
Although the number one and number two ranked cryptocurrencies have been trading sideways, there has been enough downside to trigger a buy setup on their USD trading pairs.
On both BTCUSD and ETHUSD, the TD Sequential indicator is signaling a 9 count and imperfect buy setup.
Bitcoin BTCUSD TD Sequential 9 Buy | Source: TradingView
For the buy setup to perfect, today’s candle must set a lower low than yesterday’s low, pushing to sub $9000.
A rise above roughly $9250 would flip the series green and change the 9 to a 1 candle. A 1 candle signifies the start of a new sequence.
Ethereum ETHUSD TD Sequential 9 Buy | Source: TradingView
For Ethereum to perfect, the number one altcoin must fall to below $229 per ETH. A rise above $240 would turn the series green and start the sequence over.
It’s worth noting that just because the setup is here, it doesn’t necessarily guarantee follow-through. The indicator has been highly accurate in cryptocurrency trading but isn’t 100% successful.
Related Reading | Sell Signals On Ethereum and Others Could Mean Altcoin Season Is Finished
Recently, sell setups on these same major crypto assets have resulted in no break of the current trading range or end to sideways action. A sell signal also appeared ahead of Chainklink setting new record highs – so anything is possible.
If Bitcoin and Ethereum once again shake off any buy or sell signals, the crypto market could experience an even longer bout of stagnancy. If this continues, small- and mid-cap altcoins could continue to outperform.
OhNoCrypto
via https://www.ohnocrypto.com
Tony Spilotro, Khareem Sudlow