*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
- Cryptocurrencies are bouncing with the U.S. stock market. A S&P pullback = decline in cryptcurrencies.
8:25 am. Cryptocurencies are bouncing with the U.S. stock market
There’s no denying the short term positive correlation between U.S. stocks and Bitcoin. Bitcoin and the S&P 500 bottomed at around the same time and have been moving in lockstep over the past few days.
I laid out the case for a stock market pullback. If that happens, I expect Bitcoin and other alt-coins to at least make a pullback. Keep in mind that Bitcoin is at $10,000, which is a psychological resistance $.