A recent post pointed out the very negative configuration on Bitcoin (first chart here). That count needs to be revised as the high from Friday has been breached. So long as the 7/7 high remains intact, we may simply count it like this:
Ethereum, on the other hand has taken out its prior high, but it remains in an equally precarious structure. Today’s spike involved a perfect strike of perfectly parallel rails (I “cloned” the lines so as to be precise). It’s a perfect strike. Haha, algos are so weird. At any rate, the bear flag itself has a deep measured move (which I’ve noted). We may not get that low, but it’s possible that we do.
And the whole structure counts very elegantly. A “C” leg should be an impulse, and this clearly is (unlike Bitcoin, which requires some fudging to make it a true impulse). And if this is redistribution, it should end with a spike just like this one, the “upthrust after distribution.”
So, let’s see what happens. But, this remains a good setup for failure in both assets.
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