Bitcoin (BTC), Ethereum (ETH), Monero (XMR), And ChainLink (LINK)

– Probable downside continuation likely.

– Short entries and profit targets identified.

Bitcoin (BTCUSD)

Above: Bitcoin (BTCUSD)

The chart style above is known as Point & Figure – it’s the oldest known form of technical analysis charting styles that exists and it is ancient in its form. We have wheat charts from ancient Egypt (pre-Ptolemy Dynasty) utilizing a variant of Point & Figure charts along with corresponding styles across history. It is a ‘Price Action’ style of charting, meaning only price is recorded. There is no volume or time included with this chart data. It is the price action trader’s ‘purist’ chart form. Using this style to identify entries and exists makes trading a little more clear and little less noisy. On Bitcoin’s chart, the short entry would be after the break of a double bottom at $33,400 with a sell stop entry at $33,200. The profit target is identified by using the Vertical Profit Target method in Point & Figure, which gives us a profit target of $28,000. If the next column of O’s forms and the short entry occurs in that same column, we will have what’s known as a confirmed Bull Trap Pattern on the chart. Trap patterns on Point & Figure charts have a high positive expectancy rate of becoming profitable trades.

Sell Stop @ $33,200

Profit Target @ $28,000

Ethereum (ETHUSD)

Above: Ethereum (ETHUSD)

Ethereum’s current Point & Figure chart has the same bearish pattern that Bitcoin has, a Bull Trap. If Ethereum moves down to form a double bottom at $1,280 and triggers the sell stop at $1,270 then we have a confirmed Bull Trap Pattern. The profit target is at $1,210. However, if a new X does form on the current column of X’s, then consider this trade to be voided and no longer valid.

Sell Stop @ $1,270

Profit Target @ $1,210

Monero (XMRUSD)

Above: Monero (XMRUSD)

I haven’t really done much analysis over one of my favorite privacy coins, Monero. Monero is developing the same pattern that we observe on both Bitcoin’s and Ethereum’s chart: a Bull Trap. Monero, however, compared to Bitcoin and Ethereum’s charts, Monero is just one box away from confirming the Bull Trap pattern while the other two cryptocurrencies have yet to form their respective O columns. I am looking for a break below the current double bottom at $130.00 with a sell stop target at $120.00. I place the profit target slightly below the 50% range of the longest X column (three columns back) at $80.00.

Sell Stop @ $120.00

Profit Target @ $80.00

ChainLink (LINKUSD)

Above: ChainLink (LINKUSD)

ChainLink has, by far, been one of the most successful and bullish cryptocurrencies of the past two and half years. Even during the bearish phase of 2019 and early 2020, LINK outperformed nearly every cryptocurrency in the top 30 market cap coins. LINK’s Point & Figure chart shows an active and current short entry opportunity at $22.00. This is an excellent short entry condition for two reasons: First, the entry is a break of a triple bottom. Second, the existence of a Bull Trap pattern. LINK is currently trading slightly above the short entry ($22.27 at the time of writing this article), but the entry is nonetheless still valid. The profit target at $15.00 is slightly above the 50% retracement of the prior swing high and most recent major swing low found on September 15th, 2020 ($8.00).

Sell Stop @ $22.00

Profit Target @ $15.00