Sally Ho's Technical Analysis 18 May 2019

Bitcoin

Bitcoin (BTC/USD) gained marginal ground early in today’s Asian session and traded as high as the 7441.66 level, having orbited its 50-bar MA (4-hourly) since early yesterday. Traders are still discussing yesterday’s so-called flash crash that saw the price dive to the 6600.00 figure after many Stops were elected on the way down. BTC/USD came off approximately US$ 1,340.75 in less than three hours and at one point fell US$ 1,000.00 in about eleven minutes.

During the acute downturn, Stops were elected below the 6730.01 and 6677.81 areas, both of which represented retracement levels that easily gave way and did not provide too much in the way of technical Support. Momentum traders were seen hitting the market during the rapid decline, with short covering seen around 7558.53, 7194.73, and 6696.03. In another bearish signal, the 50-bar MA (hourly) is now trading below the 100-bar MA (hourly) and appears to be converging with the 200-bar MA (hourly).

Below current price activity, traders are again eyeing the 100-bar MA (4-hourly), now indicating around 6548.04. Important areas of technical Support include 6370.02, representing the 38.2% retracement of the 3128.89 – 8388.00 range, and the 5758.45 area, representing the 50% retracement of the same range.

Price activity is nearest the 50-bar MA (4-hourly) at 7381.70 and the 200-bar MA (Hourly) at 7367.99.

Technical Support is expected around 6440.82/ 5805.45/ 5176.07 with Stops expected below.

Technical Resistance is expected around 7587.90/ 8488.00/ 9734.52 with Stops expected above.

On 4-Hourly chart, SlowK is Bullishy above SlowD while MACD is Bearishly below MACDAverage.

On 60-minute chart, SlowK is Bullishly above SlowD while MACD is Bullishly above MACDAverage.

Ethereum

Ethereum (ETH/USD) weakened a little during today’s Asian session, trading as low as the 238.10 area after running out of steam around the 249.24 area. Today’s intraday high was below the 252.39 area, representing the 23.6% retracement of the move from 157.28 to 281.77. Yesterday’s move lower was quite abrupt with the pair depreciating about US$ 44.70 in less than three hours. Chunky Stops were elected below the 234.24 area during the move lower, representing the 38.2% retracement of the 80.60 – 281.77 range.

Additional Stops were elected yesterday below the 213.89 level, representing the 50% retracement of the move from 146.00 to 281.77.  Above current price activity, traders are eyeing the 252.33 area, representing the 50% retracement of the 281.77 – 222.88 range, with the 259.27 and 267.87 areas also representing upside technical Resistance related to the same range.

Price activity is nearest the 50-bar MA (4-hourly) at 212.75 and the 100-bar MA (Hourly) at 236.75.

Technical Support is expected around 219.53/ 204.84/ 185.46 with Stops expected below.

Technical Resistance is expected around 258.92/ 272.56/ 281.77 with Stops expected above.

On 4-Hourly chart, SlowK is Bullishly above SlowD while MACD is Bearishly below MACDAverage.

On 60-minute chart, SlowK is Bearishly below SlowD while MACD is Bullishly above MACDAverage.