*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, IOTA, and Dash are all on the verge of breaking down.
- Litecoin’s price action is even weaker than Bitcoin’s.
- Bitcoin’s potential breakdown is a cloud that hangs over Ethereum.
- Bitcoin is turning down from lower highs.
3:20 pm. Bitcoin Cash, IOTA, and Dash are all on the verge of breaking down.
These cryptocurrencies are making lower highs and lower lows. In addition, their bounces are becoming weaker and weaker. They are on the verge of breaking down. Trend followers should not go long right now.
2:15 pm. Litecoin’s price action is even weaker than Bitcoin’s.
Litecoin is making lower highs and lower lows. Its bounces are also weaker than Bitcoin’s. Litecoin is on the verge of breaking down.
2:11 pm. Bitcoin’s potential breakdown hangs over Ethereum.
Ethereum is constantly trying to rally. It was in a strong uptrend until mid-January, when Bitcoin’s decline finally brought Ethereum down. Bitcoin’s decline today brought Ethereum down as well.
I don’t expect Ethereum to make a new all-time high and resume its rally until Bitcoin makes a new-all time high. Don’t buy Ethereum until it makes a new all-time high.
2:04 pm. Bitcoin is turning down from lower highs.
Bitcoin is making lower highs. It is falling from yesterday’s lower high, and its consolidation range has become extremely narrow. Hence, there’s a >50% chance that Bitcoin will breakdown within the next 1-2 weeks.
Read Cryptocurrencies on January 28, 2018.