Cryptocurrencies on February 17, 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
- IOTA, Ripple, and Dash are still making lower highs and lower lows.
- Litecoin’s next major resistance is $300
- Bitcoin Cash is still making lower highs and lower lows.
- Ethereum faces major resistance at $1000
- Bitcoin is still making lower highs and lower lows. Is this bearish pattern about to change?
2:43 pm. IOTA, Ripple, and Dash are still making lower highs and lower lows
These are bearish patterns. A break to “higher highs” will be the first sign that the bear market in cryptocurrencies is over.
2:38 pm. Litecoin’s next major resistance is at $300
Litecoin is still stuck in a bearish pattern of “lower highs and lower lows”. Litecoin’s 61.8% retracement and previous “lower high” is at $300. Bear market rallies should not exceed the 61.8% retracement.
If Litecoin breaks above $300, then that is a major sign that Litecoin’s bear market is over.
2:35 pm. Bitcoin Cash is still making “lower lows and lower highs”
Bitcoin Cash’s bounce is rather weak compared to other cryptocurrencies. It is stuck in a pattern of “lower lows and lower highs”. A break above $2100 will be the first hint that Bitcoin Cash’s bear market is over.
2:32 pm. Ethereum faces major resistance at $1000
Like Bitcoin, Ethereum is still stuck in a bearish pattern of “lower highs and lower lows”. Moreover, Ethereum faces major resistance at $1000. This is the trendline resistance & round # psychological resistance.
A break above $1000 will be the first sign that Ethereum’s correction is over. That will be a “higher high”.
2:25 pm. Bitcoin is still making lower highs and lower lows. Is this bearish pattern about to change?
Although Bitcoin’s bounce continues, it is still making a bearish pattern of lower highs and lower lows.
A break above $12,000 invalidates the “lower highs” bearish pattern. For trend followers, a break above $12,000 will be the first sign that Bitcoin’s trend has changed from DOWN to UP.
Aggressive trend followers can go long once Bitcoin breaks above $12,000. But I think conservative trend followers should wait until Bitcoin makes a new all-time high before buying. This could still be just a bear market rally.
Read Cryptocurrencies on February 16, 2018.