Digital currencies have had some tough trading days and weeks for a while.
With the correlation running strong with US stocks, particularly higher-charged tech stocks, digital currencies have been mostly trading into the red.
However, there may well be some upside trading levels for the leading currencies that we follow via futures contracts in BTC and ETH.
And at the same time, we can also trade them to the downside in the futures markets as appropriate.
So, today, let’s revisit BTC and ETH from a trading perspective and see what might be in store…
Daily Charts & Discussion Points
Here’s the daily chart of BTC…
As you can see and read above in our notes, BTC is in the middle of two potential turning points.
The first is for a further potential downside move that could set up a sell to profit from that downside move. The second is for a turn back to the upside that could set up a major buy opportunity to a big upside level.
As noted on the chart above, the daily time frame is showing a down channel, and the market has a down Fibonacci extension at 26,840.
The market is at a low price, so it will be a good idea to wait for a daily high price before looking for selling ideas towards the daily down Fibonacci or to wait for the market to hit that Fibonacci and then look for long ideas towards the top of the channel at 60,295.
And here’s the daily chart for ETH…
For ETH, there is the building potential for a trade to be made for an upside level that you can see above.
As noted on the chart, the ETH daily time frame is in an up channel, with the market at the bottom of the channel.
If support holds, I am expecting the buyers to create a new bullish trend towards the top of the channel at 5,101.50.
It will be a good idea to stay out of the market until the buyers break and close above the short-term down trend line above the bottom of the channel.
The Bottom Line
Every week, we cover the ETH and BTC markets as well as the major stock markets inside of my entry level futures trading service, Futures War Room.
For more on the markets as well as trading education and trading ideas like this one, look for the next edition of Josh’s Daily Direction in your email inbox each and every trading day.
I’ll be bringing you more of my stock and futures contract trading tutorials as well as some additional trading ideas.
And if you know someone who’d love to make this a part of their daily trading routine, send them over to joshsdailydirection.com to get signed up!
Keep on trading,
P.S. At Traders Agency, we are working overtime in our research to find the top trades, including the top stocks in what has become a tough market right now.
My colleague and expert stock trader Ross Givens has just done some deep-dive research on what he sees as the #1 Tech Stock of the Decade in the making that you need to get onboard with now… Way before it gets on the screens of the big traders.
The post Checking In on BTC & ETH After Yesterday’s Big Drop appeared first on Josh Daily Direction.