Cryptocurrencies on February 24, 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 is being rejected on its trendline resistance. It’s trying to make “higher lows”.
  2. Bitcoin Cash is on the verge of breaking down from its 200 sma
  3. Ethereum is stuck in a bearish channel
  4. Litecoin, Ripple, and Dash are still stuck in a bear market pattern

2:37 pm. Bitcoin is being rejected on its trendline resistance.
Contrarian traders think that Bitcoin is trying to make a bullish inverse head-and-shoulders pattern.

But on a bigger time frame, Bitcoin is still making “lower highs” via its trendline resistance. Trend followers shouldn’t go long now. If Bitcoin breaks below its 200sma, expect it to freefall. All the speculators who “bought the dip” at Bitcoin’s 200 sma will cover their longs.
2:33 pm. Bitcoin Cash is on the verge of breaking down from its 200 sma
Bitcoin Cash is being guided lower by its trendline resistance. It is currently sitting on its 200 daily moving average. If Bitcoin Cash breaks down, it will break down very soon. Trend followers should not go long right now.

2:27 pm. Ethereum is stuck in a bearish channel
Ethereum is still making a pattern of “lower highs and lower lows”. It was rejected from trendline resistance.
Contrarian traders who still believe in the crypto bubble are going long here. Ethereum has fallen to its January 17 lows.

Trend followers shouldn’t go long right now. There are no conclusive signs that a new crypto bull market has started.
6:13 am. Litecoin, Ripple, and Dash are still stuck in a bear market pattern.
Despite its recent bounce, Litecoin is still making a standard bear market pattern of “lower highs and lower lows”. Litecoin has already bounced on its 200 daily moving average. If Litecoin breaks below its 200 sma, expect it to go a lot lower.

Ripple is just like Litecoin. It is still making a bear market pattern of “lower highs and lower lows”. It also bounced near its 200 sma.

Likewise, Dash is making lower highs and lower lows. It has almost re-approached its 200 daily moving average.

Trend followers should not go long these 3 cryptocurrencies. They are still stuck in bear market patterns of “lower highs and lower lows”.
Read more about cryptocurrencies on February 23, 2018.

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