Cryptocurrencies on January 6, 2018: outlook


*I don’t trade cryptocurrencies. The best strategy for trading a crypto bubble is a classic trend following strategy.
Here’s the outlook for various cryptocurrencies based on the aforementioned strategy.

Discretionary outlook based on charts

  1. Bitcoin continues to struggle at its 61.8% retracement.
  2. Ripple’s uptrend remains intact.
  3. Ethereum’s rally is still intact.

8:59 am. Bitcoin continues to struggle at its 61.8% retracement.
Bitcoin broke out from its triangle consolidation pattern a few days ago. That’s a bullish development. Bitcoin is at its 61.8% fib retracement, and is trying to turn this into support.

In other words, Bitcoin’s uptrend is slowly starting to resume. Trend followers should wait until a breakout above $20k.
7:37 am. Ripple’s uptrend remains intact
Despite consolidating over the past 3 days, Ripple’s uptrend is still very much intact. Notice how the 9 ema has been good support throughout Ripple’s entire rally. Longs should not cut their position unless Ripple breaks below this support level.
 

7:31 am. Ethereum’s rally is still intact.
After breaking out from $850, Ethereum tagged $1000 2 days ago. Many swing traders have exited their long Ethereum positions. But the trend following strategy say that longs should hold their positions with a tight trailing stop loss.

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