Cryptocurrencies on January 24, 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. Litecoin is stuck in a downtrend.
  2. Ripple’s downtrend is firmly in play.
  3. Ethereum is in a consolidation pattern.
  4. Bitcoin is on the verge of breaking down.

3:38 pm. Litecoin is stuck in a downtrend.
Trend followers should avoid Litecoin, which is stuck in a bearish pattern.

3:36 pm. Ripple’s downtrend is firmly in play.
Ripple is completely stuck in a downtrend. Trend followers should avoid this cryptcurrency.

3:35 pm. Ethereum is in a consolidation pattern.
Ethereum is completely stuck in a consolidation pattern. Trend followers should wait for a new all-time high before buying.

3:30 pm. Bitcoin is on the verge of breaking down.
Bitcoin’s bounce off the $1100-$1000 support level is extremely weak. It is making lower lows and lower highs. This is bearish. Trend followers should wait for a new all-time high before buying. Otherwise, Bitcoin will probably break down.

Read Cryptocurrencies on January 23, 2018.

3 comments add yours

  1. Have Stellar Lumens broken out or wait for a new all time high? Wouldn’t you miss a big part of the move waiting for an ATH?

    • Hi David,
      The safe way to trade is to wait until Stellar lumens makes a new all-time high. Yes, you would miss a big chunk of the move.
      But you don’t know if the bubble in cryptocurrencies is over or not. If it’s over, buying at any price is suicide.
      A breakout to new all time highs guarantees that the bubble isn’t over.

      • Thanks. They seem to be pulling back. I’ll keep them on my watchlist for an ATH.

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