BLOOMBERG GALAXY CRYPTO INDEX: Trying to build a bottom above the horizontal support around 242.65……

Short-term: Neutral (29 nov 2018)

Support 1: 276.55 Resistance 1: 300.50

Support 2: 253.03 Resistance 2: 307.81

We moved to a ‘Neutral’ rating after the recent recovery, looking for a possible bottom. However, this should be confirmed.
Prices are struggling with the long-term falling trend line around 284.50 with next strong resistance coming in between the horizontal line around 300.50 and the declining EMA-200 line at 307.81. Please note the negative divergence in the hourly momentum chart in combination with a break below the rising MA-34 line at 279.11. This is suggesting a short-term decline in making a short-term higher low above the horizontal support around 242.65 in building a bottom.
An hourly close below the horizontal support around 276.55 will confirm the start of the next decline.

Bloomberg Galaxy Crypto Index uurgrafiek 1 (3)

Bloomberg Galaxy Crypto Index daggrafiek 1 (3)

Prices are hovering around the former lower end of the former falling trend channel around 274.50, suggesting the possibility of a bottom followed by a solid recovery. A rise and close above yesterday’s high at 295.56 is confirming this scenario. Next strong resistance comes in at the horizontal line around 359.50.

The rise of the blue momentum line in the daily Ichimoku chart suggests the likelihood of a recovery, although the upside potential will be limited. Strong resistance comes in at the mid-lines between 318.75 and 362.54. The overall picture remains bearish as long as prices are moving below the cloud area 441.07-442.96.

Bloomberg Galaxy Crypto Index uurgrafiek 2 (3)

The 60 minute Point&Figure chart shows a mixed picture, not unusual within the bottoming process. Yesterday, we received the bullish target at 301.39 after the short-term improvement. Today’s weakness resulted in a short-term bearish target as well at 253.03. This suggests volatility should be expected on a short-term basis.

All in all, the development of a short-term bottom should be expected after yesterday’s recovery. There is a short-term bearish target of the 60 minute Point&Figure chart at 253.03, suggesting a higher low above the horizontal support in the hourly chart above the 242.65 level.
From here we would like to see a violation of the long-term falling trend line around 284.50 in combination with the resistance area above the horizontal line around 300.50 in combination with a close above the EMA-200 line at 307.81. That will trigger a short-term Buy signal, although the upside potential will be limited. Prices will meet plenty of resistance between 318.75 and 359.50.

Bloomberg started the Bloomberg Crypto Index since May this year. This Index provides a good overall sentiment of the Crypto currency market. We will use the hourly chart until further notice as the price history is limited since the start in May.

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BLOOMBERG GALAXY CRYPTO INDEX: Trying to build a bottom above the horizontal support around 242.65……

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