Both Bitcoin and Ethereum are up huge since I first wrote about them in May and June, respectively.
Bitcoin was trading at $8,828, which marks a 50% gain so far, and Ethereum was $243, or a 56% gain as of today’s price.
I was telling DPA members about these investments long before that when Bitcoin was $7,000 and Ethereum was just over $200.
As I’ve stated before, I’m treating cryptos like Bitcoin, Ethereum, and VeChain as investments.
That’s because of where they are in the broader cycle.
But I realize not everyone wants to buy and hold.
If you’re looking for a trade in the crypto space, ETHBTC is one worth keeping an eye on.
That’s Ethereum (ETH) versus Bitcoin (BTC).
I mentioned this pair on Twitter a few months ago as it was breaking out of a multi-year descending trend line.
$ETHBTC is on the verge of breaking out.
— Justin Bennett (@JustinBennettFX) June 23, 2020
I'm still a Bitcoin bull, but asymmetry favors Ethereum.#Bitcoin #Ethereum pic.twitter.com/H59xbC1f6z
That breakout triggered a 62% rally.
Since then, ETHBTC has pulled back about 30% as of today’s price.
What’s interesting is the pattern that’s formed since the late 2018 price action.
If it plays out, it points to a 120% rally from today’s price that should take us well into 2021.
A retest of the support area between 0.0246 and 0.0270 would be closer to a 150% rally.
I’m using a measured objective to calculate both of those targets, which is 0.0650.
Just keep in mind that ETHBTC may have another five to thirteen percent of downside to go before it finds a bottom.
A move higher from that 0.0246 to 0.0270 area would start to carve the right shoulder of what could be a massive inverse head and shoulders pattern.
Note too that it’s going to take a weekly close above 0.0405 to confirm the structure.
Disclosure: I have investments in Bitcoin, Ethereum, and VeChain.
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