*I don’t trade cryptocurrencies. The best strategy for trading a crypto bubble is a classic trend following strategy.
Here’s my outlook for various cryptocurrencies based on the aforementioned strategy.
Discretionary outlook based on charts
- If Bitcoin breaks above $9700, next target is $11,700
- If Ethereum breaks above $700, next target is $975-$1000
- Bitcoin Cash is near a bull/bear decision point
- Ripple’s real test is at $1.2
8 am: If Bitcoin breaks above $9700, next target is $12k
Bitcoin made a small pullback, and is now climbing again. If it breaks above the $9700-$10k resistance level, then its next resistance is at $11,700-$12k.
The defining characteristic of a “bear market” = “lower highs and lower lows”. The previous highs was at $11,700 (multiple resistances there). As long as Bitcoin doesn’t break above this resistance, then it is stuck in a bear market and will probably head lower.
But if Bitcoin breaks above $11,700 (i.e. makes a higher high), it’s a big sign that a new crypto bull market may be starting.
8 am: If Ethereum breaks above $700, next target is $975-$1000
Ethereum made a pullback and is now climbing again. If it breaks above the $700 resistance level, then its next target $975-$1000.
$975-$1000 is the bull/bear line. Ethereum is still making “lower highs”, so a break above $1000 would be a higher high. When that happens, Ethereum’s bear market pattern will be broken.
8 am: Bitcoin Cash is near a bull/bear decision point.
Bitcoin Cash is one of the first major cryptocurrencies to be on the verge of making a higher high.
If it makes a higher high, then it’s a big sign that Bitcoin Cash’s bear market is over.
8 am: Ripple’s real test is at $1.2
Ripple is still stuck in a bear market with lower lows and lower highs. But if it breaks above $1.2, then that will be a major bull market sign.
Read Cryptocurrencies on April 27, 2018: outlook