In Monday's report, we outlined how conditions haven't fully developed for a high-conviction dip-buy. We're anticipating a high concentration of whipsaws before these assets find a tradable bottom.
At the same time, from a risk-versus-reward perspective, the recent pivot lows are proving to be important levels of interest right now.
In a weekend note, we'd asked whether this was simply a retest of the crash low -- or whether it was still crashing.
![](https://media-allstarcharts.s3.amazonaws.com/wp-content/uploads/2022/01/image1-3.png)
Fast-forward today, and the market is respecting this level -- certainly an important one to be watching.
![](https://media-allstarcharts.s3.amazonaws.com/wp-content/uploads/2022/01/btccrash2.png)
It seems the equivalent level in Ethereum is just below 3,000, which not only represents its latest pivot lows but is also the 61.8% retracement of the entire July-to-November rally.
![](https://media-allstarcharts.s3.amazonaws.com/wp-content/uploads/2022/01/ethusddd.png)
We have no problem being long both Bitcoin and Ethereum against these levels, though we're also keeping in mind these markets have a tendency to fake out around major turning points.
But, when we step away from buying dips, a few standouts are pressing toward new highs in this otherwise messy tape.
Article Sales Message
All Star Charts Crypto Members Receive
- Our professional research delivered to your inbox
- High conviction trade ideas to make money
- Full coverage of entry and exit signals across the crypto landscape, including major coins, altcoins, and other tokens
- Video conferences every week
- Alerts to cryptocurrencies before they become mainstream
- Custom indices, correlation, trend strength and relationship analysis
- Access to Rangefinder – our proprietary app for tracking trade ideas in real time (annual members only)
You need to have a subscription to access this content in full.
Log in or
subscribe