Cryptocurrencies on April 8, 2018: outlook


*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

  1. Bitcoin and Litecoin are on the verge of breaking down.
  2. Ethereum continues to make lower highs.
  3. Bitcoin Cash’s next support level is 50% below where it is today.
  4. IOTA’s next support is far below where it is today.
  5. Ripple has broken down. Its next support is far below.
  6. Dash is almost at a major support.

Bitcoin and Litecoin are on the verge of breaking down.
Bitcoin is in a bearish pattern of “lower highs”, which is standard for bear markets. This resistance trendline is coming down and is getting ready to push Bitcoin below its support level. Hence Bitcoin is on the verge of breaking down.

Likewise, Litecoin is also making “lower highs” and the verge of breaking down.

Ethereum continues to make lower highs.
Like Bitcoin, Ethereum continues to make lower highs. This is a bearish pattern. It is firmly stuck in a downtrend.

Bitcoin Cash’s next support level is 50% below where it is today.
Bitcoin Cash is making lower highs like every other major cryptocurrency. Bitcoin Cash’s next major support level is at $300, more than 50% below where it is today.

IOTA’s next support is far below where it is today
IOTA is stuck in a bearish pattern of “lower highs and lower lows”. Its next support is far away.

1 am: Ripple has broken down. Its next support is far below.
Ripple has broken down from prior support. Its next support is at 20 cents. It is stuck in a bearish pattern of “lower highs”.

Dash is almost at a major support.
Dash has been stuck in a bearish pattern of lower highs. However, it is almost at a major support. Dash is the first major cryptocurrency to have deflated most of its bubble. Expect a big bounce on this support.

4 comments add yours

  1. Hi Troy,
    How strong does the Verge breakout looks to you? From a technical point of view?

      • Verge has been trending up from its March lows based on an expected partnership. How strong of a rebound does it look to you?

        • Sorry David, I don’t really follow Verge, so commenting on this would be inappropriate. I don’t want to give my outlook on something I’m not familiar with.
          Kind regards,
          Troy

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