*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
- Litecoin has broken above its wedge.
- Dash’s consolidation range has become extremely narrow.
- Bitcoin Cash’s consolidation range is extremely narrow.
- IOTA is consolidating
- Ripple has consolidated over the past few days. It’s uptrend may still be intact
- Ethereum continues to rally. Trend followers should remain long.
- Bitcoin is still struggling at its 61.8% fib retracement level.
4:14 pm. Litecoin has broken above its wedge
Litecoin has broken above its wedge. Very aggressive trend followers can go long now, but safe trend followers should wait for a new all time high before buying.
4:06 pm. Dash’s range has become extremely narrow.
Trend followers should not jump into Dash in anticipation of a breakout. Wait for a true breakout (i.e. new all time high). In the past, Dash has gone sideways for months.
3:52 pm Bitcoin Cash is on the verge of breaking out.
Bitcoin Cash’s triangle consolidation has narrowed to the point of no return. Bitcoin Cash will have to breakout on the upside or downside very soon. Trend followers should not go long here. Wait for a breakout.
1:26 pm. IOTA is consolidating.
Neither bulls nor bears have an advantage here. The short term is a 50-50 bet. Wait for IOTA to breakout above $5.5 before going long. Then use a moving stop loss.
1:17 pm. Ripple has consolidated over the past few days.
However, Ripple has not broken down yet. It’s uptrend is still intact. It hasn’t breached its 9 ema or 15 ema. Hence, trend followers should hold their longs until Ripple breaks below a moving stop loss.
10:37 am. Ethereum continues to rally.
Many of the best traders got out of Ethereum at the $1000 resistance. I said that Ethereum’s rally is still intact. As expected, Ethereum continues to surge. Trend followers should remain long until Ethereum’s strong momentum starts to break down. Protect profits using a tight stop loss (e.g. the 15 ema)
8:25 am. Bitcoin continues to struggle at its 61.8% fib retracement level.
Despite breaking out from a triangle consolidation pattern a few days ago, Bitcoin is still stuck in a “head and shoulders” pattern. It is trying to find support on the 61.8% retracement level. Hence, the best crypto traders that I know have not gone long Bitcoin. They are waiting for a breakout above $20k. That’s what the trend following strategy would recommend.