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

  1. IOTA, Ripple, and Dash are still making lower highs and lower lows.
  2. Litecoin’s next major resistance is $300
  3. Bitcoin Cash is still making lower highs and lower lows.
  4. Ethereum faces major resistance at $1000
  5. 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.

Leave a Comment