In my last post on Monday I was looking at the possibility that a bull flag channel might well be forming on Solana, and that delivered beautifully. Not everyone saw the post of course as you can see from a tweet I saw last night:
Solana (SOLUSD) reached the daily 3sd lower band, often a good area to look for a reversal, tested that twice and has rejected higher. Key resistance remains at the daily middle band, currently at 236, which has held as resistance at the close each day for the last ten days. That needs to be broken and converted to support to clear the path for Solana to retest the all time high.
SOLUSD daily chart:
On the 15min chart the possible bull flag channel setup I posted on Monday formed and a double bottom formed at the low retest. That double bottom has now broken up with a target in the 237.5 to 240 area, in effect a retest of bull flag resistance, currently in the 239.5 area.
SOLUSD 15min chart:
On Bitcoin (BTCUSD) I was suggesting last Thursday that the hit of the daily 3sd upper band at 104k might well deliver some consolidation before going higher and we’ve been seeing that.
Bitcoin backtested the daily middle band and held it. The obvious next target would be a retest of the all time high.
BTCUSD daily chart:
On the 15min chart there was no obvious pattern but this was a triangle type contracting bullish consolidation, and declining resistance broke this morning. It’s possible a larger flag could form with a lower low first, but overall that doesn’t seem likely.
BTCUSD 15min chart:
Both Bitcoin and Solana had daily RSI 14 sell signals fix last week of course, and Ethereum (ETHUSD) also had one fix yesterday, so now all three have fixed daily RSI 14 sell signals. These are likely signalling a larger retracement coming in the first months of next year
In the short term Ethereum backtested the daily middle band on this retracement and held it. As long as that remains the case the next obvious target is a retest of the 2024 high at 4095.77, with an eye on the next big target, which is a retest of the 2021 all time high at 4865.94.
ETHUSD daily chart:
On the Ethereum 15min chart a double bottom formed at the low and has broken up with a target in the 4050 area, just below the 2024 high. I’d expect this to at minimum run on into a new 2024 high.
ETHUSD 15min chart:
On the bigger picture I’m leaning bullish across the board with the caveat that the fixed daily RSI 14 sell signals on Bitcoin, Solana and Ethereum are warning that a longer and deeper consolidation may be coming within a few weeks.
I have to be out tomorrow and won’t be back until late in the day. My next premarket video will therefore be on Friday morning.
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