Cryptocurrencies on January 18, 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. Dash is turning prior support into resistance.
  2. Ripple is channeling lower.
  3. Litecoin is still channeling lower.
  4. IOTA may be turning prior support into resistance.
  5. Bitcoin Cash’s bounce is very weak compared to that of other cryptocurrencies.
  6. Don’t buy Ethereum. Other cryptocurrencies may drag it down.
  7. Do not chase Bitcoin’s bounce.

1:25 am. Dash is turning prior support into resistance, just like many of the other major cryptocurrencies.
Trend followers should not buy Dash unless it makes a new all-time high.

1:23 am. Ripple is channeling lower.
Ripple is not making a bull flag. In a bull flag, the market either swings sideways or goes down a little. Ripple’s trend is decisively down. Avoid Ripple unless it makes a new all-time high.

1:16 am. Litecoin is channeling lower.
Litecoin’s trend is still decisively down despite today’s bounce. At the very least, trend followers should wait until Litecoin breaks above its resistance trendline before buying.

8:45 am. IOTA may be turning prior support into resistance.
Like Bitcoin, IOTA may be turning prior support into resistance. This is a bearish sign. Trend followers should not buy IOTA right now.

8:37 am. Bitcoin Cash’s bounce is very weak.
After breaking down below its prior range, Bitcoin Cash is making a very weak bounce. Don’t buy here because you don’t know if Bitcoin Cash’s decline is over.

8:33 am. Don’t buy Ethereum.
Ethereum has completely broken down from its 9 ema support.

Don’t buy Ethereum right now. If other cryptocurrencies like Bitcoin continue to fall, their decline will drag Ethereum down as well.
8:28 am. Do not chase Bitcoin’s bounce.
In all honesty, nobody knows if Bitcoin’s bubble is over or not. It’s a 50-50 wild bet. Bitcoin has broken down from its prior support and may be turning this into resistance. Bitcoin has made a lower low (bearish sign).
Trend followers should wait until Bitcoin makes a new all-time high before going long. If Bitcoin can’t make a new all-time high, then you know that its’ bubble is over. Trade safe and manage your risk.

Read Cryptocurrencies on January 17, 2018

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