It seems that everyone is nearly ready to call the great bull market of 2018 on COINBASE:BTCUSD and COINBASE:ETHUSD . Have we broken out yet? If so, where is the volume? Valid questions. Let's check out the analysis.
Over the last year, the log chart gives the most touches for lines; that is why I use it here.
The dominant support line in this analysis starts in May 2017 and is linearly increasing on the log chart (exponential growth). This is the thicker black line on the bottom. The thinner black lines are shorter-term lines. So when can we call the breakout, and where should we set profit targets?
When COINBASE:ETHUSD broke out of a similar pattern in November 2017, the safe buy was at $381 with a target at $439. The distance between the breakout point and the target is the same as the distance between the breakout and the support line.
A similar trend is developing now -- an all time high followed by consolidation and subsequent retrace. The difference is that the retrace is happening more quickly and violently this time around. This analysis shows that we can declare a breakout in the next couple days if COINBASE:ETHUSD closes a day above $921. If we break the short-term support line, the price is likely to retrace further and bounce off of the major support line around $780.
What do you think? I appreciate any likes and comments. Stay safe out there :).