Technician’s Take: ETC and BTC Track Sidewise Together With Upwards Potential
- Creeping price action, setting up for a sharp push higher.
- The preferred view is that Ethereum leads in the anticipated next leg higher.
Bitcoin and Ethereum are still projecting higher individually, but more or less in lockstep currently. This is apparent in the spread between the two, which is tracking sideways.
Typically price creeping along in a narrow range after a high momentum lift-off is a sign that things are setting up for a sharp push higher. The small body candles and short wicks up and down signal that a “conversation” is taking place within the market. Neither Bulls nor Bears are committing hard, and a waiting game is underway. Sometimes these patterns are called Flags or Pennants and typically they resolve in the same direction as the move in before they started forming – in this case, up.
Additionally, the lower horizontal line in the chart (the one supporting the sideways move at the moment) goes all the way back to last November where it served as support for a final burst higher (some 25% to the first week of December). In that sense, the level has authority and will be a tough barrier to break down through.
The preferred view is that Ethereum leads in the anticipated next leg higher.