ETH/BTC - short term pullback
Updated
ETH/BTC has broken out of it's long term downtrend and made an impressive move over the last days but now it looks like a great place to take some profit and buy back in lower.
The reason for that is:
1. ETH/BTC shot right through the daily 200 MA and hasn't had a proper correction since. Now it's very close to the daily 314 MA and will likely bounce off it and retest prior levels.
2. It's at the top of the current channel
3. Daily StochRSI is very high and likely to cycle down soon
4. Significant bearish divergence on the hourly timeframe which is also visible on the ETH/USD pair (see comment below for chart)
Long term it looks bullish to me so consider this a short term setup.
The reason for that is:
1. ETH/BTC shot right through the daily 200 MA and hasn't had a proper correction since. Now it's very close to the daily 314 MA and will likely bounce off it and retest prior levels.
2. It's at the top of the current channel
3. Daily StochRSI is very high and likely to cycle down soon
4. Significant bearish divergence on the hourly timeframe which is also visible on the ETH/USD pair (see comment below for chart)
Long term it looks bullish to me so consider this a short term setup.
Comment
ETH/BTC 1hr - bearish divergence:ETH/USDT 15m, also visible on the hourly:
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