Cryptocurrencies on January 23, 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 and Bitcoin Cash are making lower highs and lower lows.
  2. Ripple’s bounce was very weak.
  3. Ethereum has entered into a consolidation phase. Trend followers should wait for a breakout before buying.
  4. Bitcoin’s price action is bearish.

11:33 am. Dash is making lower highs and lower lows.
Like Bitcoin, Dash and Bitcoin Cash are making lower highs and lower lows. This bearish pattern indicates that Dash and Bitcoin Cash’s bubbles might be over. Trend followers should wait for a breakout to new all-time highs before buying. Otherwise the bubble bubble is over.


11:30 am. Ripple’s bounce was very weak.
Ripple’s recent bounce did not even reach the 38.2% retracement level. This is a very weak bounce and means that Ripple’s bubble could be over.

11:27 am. Ethereum has entered into a consolidation phase.
Ethereum’s rally was dragged down by the decline in other cryptocurrencies. After breaking below its 9ema, Ethereum has entered into a consolidation phase. Trend followers should wait until Ethereum makes a new high before buying. Nobody knows how long Ethereum’s consolidation phase will last.

11:20 am. Bitcoin’s price action is bearish.
Bitcoin is making lower highs and lower lows. This is clearly a bearish pattern. Moreover, Bitcoin’s recent decline is unlike it’s previous corrections from 2015-present. Throughout its previous declines, Bitcoin would fall approximately 40-50%, rally and then never look back. This time, Bitcoin is constantly retagging the $1000 support. A bearish sign.

Read Cryptocurrencies on January 19, 2018.

2 comments add yours

  1. Do you wait until price action closes or breaks above the all time high before going long? Thx.

    • I don’t trade crypto. But if I did, I would wait until it makes a new all time high. Otherwise it could be just a dead cat bounce, and you would’ve bought at the very top of the market.

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