*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
- Dash, IOTA, and Ripple are breaking down.
- Ethereum is the strongest cryptocurrency.
- Bitcoin Cash is continuing its downtrend.
- Litecoin is on the razor’s edge of a massive breakdown.
- Bitcoin’s breakdown has begun.
3:08 pm. Dash, IOTA, and Ripple are breaking down.
Dash and IOTA are starting to break down. Don’t buy these cryptocurrencies because you have no idea how low they can go. Their 200 daily moving averages are good targets.
Ripple’s 200 daily moving average is also a potential target. This means that Ripple has to fall 50%.
1:35 pm. Ethereum is the strongest cryptocurrency.
Unlike other cryptocurrencies, Ethereum is still making higher lows. Unfortunately, a continued decline in other cryptocurrencies will drag Ethereum down. Hence, trend followers should avoid Ethereum unless it makes a new all-time high.
8:24 am. Bitcoin Cash is continuing its downtrend.
Bitcoin Cash is stuck in a pattern of lower highs and lower lows like the majority of other cryptocurrencies. This is clearly a bearish pattern.
The bubble in cryptocurrencies might be over. The only way for the bubble to continue is if Bitcoin makes a new all-time high. Hence, trend followers should avoid crytocurrencies unless they make new all-time highs.
8:21 am. Litecoin is on the edge of a massive breakdown.
Litecoin is at the exact bottom of its range from December 2017 – present. Expect Litecoin to crater once this support is broken.
8:17 am. Bitcoin’s breakdown has begun.
Bitcoin is completely stuck in a downtrend. This is unlike its corrections from 2015-present in which Bitcoin fell 50% and quickly made new all-time highs. This time is different. Bitcoin fell 50%, bounced, and is now making new lows. Trend followers should avoid Bitcoin. Nobody knows how low Bitcoin can go. The 200 daily moving average is a reasonable target.
Read Cryptocurrencies on January 31, 2018.