Cryptocurrencies on January 15, 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. Ripple’s rally is completely dead.
2. Bitcoin is hugging its support trendline.
3. Litecoin’s range continues to shrink.
4. Ethereum’s rally is intact despite the 2 day pullback.

3:38 pm. Ripple’s rally is completely dead.
Ripple will probably sink into a consolidation pattern, just like all the other cryptocurrencies. Cryptocurrencies can remain within consolidation patterns for weeks, if not months. That’s why traders should avoid Ripple right now. Wait for a breakout or breakdown.

8:12 am. Bitcoin is hugging it’s support trendline
You can interpret this as a small bearish sign or a small bullish sign.

1. Bitcoin continues to find support on its rising trendline (bullish).
2. However, Bitcoin has a hard time bouncing off of this support trendline (bearish).

Neither bulls nor bears have an edge here. Trendfollowers should wait for a breakout in Bitcoin before going long.

8:17 am: Litecoin’s range continues to shrink.
Litecoin is making higher lows but lower highs. Neither bulls nor bears have an edge here. Wait before buying.

8:18 am: Ethereum’s rally is intact despite the 2 day pullback
Ethereum has made a small pullback over the past 2 days. Its rally is completely intact because it hasn’t broken below close stop losses like the 9 ema yet.