Bitcoin & Ether Holding Above Support; 1 – 2 Month Low Forming. Russell 2000 Concurs.
01/27/24 – “Stock Indices remain in positive weekly trends with the Russell 2000 continuing to signal that it should rally back to its December ’23 high… and possibly spike as high as 2140/QRH, where a new intermediate LLH exists.
While declining into mid-month and right to its weekly 21 High MAC, the Russell 2000 dropped into a recurring ~12-week cycle & high-low-(low) Cycle Progression during the most likely week (based on the weekly trend pattern) for an intermediate low.
It quickly reversed higher as other indexes – like the DJTA & S+P Midcap 400 – spiked down to support and generated weekly 2 Close Reversals higher, a signal that usually triggers 2 – 3 weeks of upside follow-through.
All three rallied into this past week but need to give daily closes above their January 23rd highs to turn their daily trends back up and exhibit any additional strength.
On a broader basis, the DJIA, S+P 500 & NQ-100 turned their initial intra-year trends up – reinforcing they are still in multi-month uptrends stemming from their late-October ’23 cycle lows. The other indexes would need to give weekly closes above their early-January highs to show similar strength…
Bitcoin & Ether are reinforcing signs of 1 – 2 month tops after Bitcoin reached its 3 – 6 month/ ~48,000/BT target and peaked, fulfilling its multi-month buy signals from mid-Sept & mid-Oct ’23. These peaks pinpointed the ideal place to liquidate longs in anticipation of a decline to 37,700 – 38,000/BT & ~2150/ETH.
Bitcoin tested & held its weekly HLS, portending a 1 – 2 month low in the coming weeks. Ether has a large amount of support developing…”
Bitcoin & Ether have likely set 1 – 2 month lows, fulfilling the weekly HLS indicator while attacking downside pullback targets. They continue to fulfill analysis for advances from their Nov ’22 lows (projected multi-year lows) and should now see a new surge into February 2024.
A common coinciding factor – the action of the Russell 2000 stock index – is also projecting a rally to new highs in the coming weeks. That could dovetail with a new surge in Bitcoin.
(Refer to January 11, 2024 The Bridge – Crypto Currency War Continues for updates on overall outlook and analysis for additional rally into February/March 2024.)
Will Dollar Rally (from Multi-Month Cycle Low in Late-December) Impact Cryptos?
Why is 1 – 2 Month Low Likely Forming? Will (Projected) Russell 2000 Rally Help?
What are Next Upside Objectives for Cryptos… Leading into February ‘24?
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.