The price didn’t go with our last analysis, the reason is that i underestimated BTC’s volatility and therefore mistaken a consolidation as a bounce. It is worth to note, however, a bigger volatility is a warning sigh, means we need to change our strategies.

You probably have noticed that my strategy was to follow the trend whenever the price breaks a key resistance or support. Unfortunately, there is tend to be more fake break through in a volatile market. As a result, we should short at a key resistance and buy at support.

ETHUSD

I gave a short advice in last analysis, the price now is still at a break even level. Stop it out now!

ETH enters to the last period of a triangle consolidation. Its’ volatility may shrink for a short time before a sharp movement. If it reaches 320, then short, ST at 350, TP at 260.

BTCUSD

If we draw a Fibonacci retracement on the downtrend since the end of July, we can see the price stopped at 6800–6900 resistance area, which is at the 38.2% level and the lower band of a consolidation area.

If it goes up and tests the 6800–6900 again, go short it! ST AT 7200 AND TP AT 5900.

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