*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
- Bitcoin Cash is still stuck in a bearish staircase pattern
- Ethereum is trying to bottom near previous support
- Bitcoin is trying to make an inverse head and shoulders pattern.
2:24 pm. Bitcoin Cash is still stuck in a bearish staircase pattern.
Bitcoin Cash’s price action is different from that of other cryptocurrencies. It likes to swing sideways for a long time, shoot up/down, swing sideways for a long time, shoot up/down….
Bitcoin Cash is stuck in a bearish pattern that looks like a descending staircase. It has turned previous support into resistance.
2:19 pm. Ethereum is trying to bottom year previous support.
Ethereum is the strongest of the major cryptocurrencies. Its bearish pattern of “lower highs” still remains. But if this indeed a new bull market in cryptocurrencies, then I think Ethereum will rally the strongest. Its price action is the strongest.
2:15 pm. Bitcoin is trying to make an inverse head and shoulders pattern.
Bitcoin’s primary pattern is a bearish one of “lower highs and lower lows”. Bitcoin is trying to change this via an inverse head-and-shoulders pattern. It is yet to be seen whether this bullish pattern will play out.
Conservative trend followers should at least wait until Bitcoin makes a higher high before buying.
Read more about cryptocurrencies on February 24, 2018.