Bitcoin (BTC)

Bitcoin’s (BTC) daily Ichimoku chart shows Bitcoin sitting in a precarious position. Price is sitting right on top of the top of the Cloud – and a very thin Cloud at that. There is an equal threat for bulls and bears at this level. If Bitcoin were to drop below the Cloud, then we could see the resumption of the bear market and a move towards the $2,000 value area. If price moves higher, and it needs to in order to remain bullish and above the Cloud, then we could see Bitcoin cross above the $10,400 zone and see a retest of the 2019 high. On this current chart, the easiest move for Bitcoin is the move south.

Ethereum (ETH)

Ethereum (ETH) has outperformed Bitcoin by a good amount today. Ethereum has maintained a fairly positive position throughout the day, trading as high as +1.50% while Bitcoin has traded near the -1.44% level. From an Ichimoku perspective, Ethereum has a much uglier looking chart compared to Bitcoin. If you are a bear, then this chart looks fantastic. Every single condition that you would want to see for a bearish sell-off is present on Ethereum’s daily chart. Price and the Chikou Span are below the Cloud; the Tenkan-Sen is below the Kijun-Sen and the Future Cloud (Future Senkou Span A and Future Senkou Span B). What makes these conditions ugly is the Chikou Span being in open space. Open space is a discovery made by the great Ichimoku analyst Manesh Patel – it is a condition where Chikou Span is below the candlesticks (for a bearish setup) and it won’t intercept any candlesticks over the next five to ten periods. This condition indicates unrestricted movement south with nearly no supportive levels below. Even though Ethereum makes up a considerable amount of the market cap for the altcoin market, it still moves in tandem with Bitcoin. It is widely believed that in order for the market to trade in a more liquid format, there needs to be a decoupling in price action from Bitcoin – and Ethereum would need to be that cryptocurrency to initiate the break of following Bitcoin.

EOS (EOS)

Weiss Ratings recently downgraded EOS. EOS was one of the ‘golden’ altcoins back in 2018. It was a much-vaunted third-generation cryptocurrency that answered the problems of decentralization and scalability. Instead, we’ve seen EOS get bogged down by a few dapps. While EOS continues to claim decentralization, it is regarded as a mostly centralized entity. I would consider EOS decentralized like the oil industry is decentralized: a few heavy players controlling the network. EOS reach its 2019 high roughly a month before the majority of the crypto market and many believed that it would possibly be a cryptocurrency that would diverge from Bitcoin and the price action of the aggregate market. That has not been the case. Instead, EOS has continued to trade lower and could be under threat to create new lows for 2019. In order for EOS to turn bullish, we would need to see it move above the daily Cloud along with the Chikou Span moving above the Cloud. In order for that to occur, EOS would need to move roughly +31% from its present position – a hard but not unrealistic goal for it to achieve.