Cryptocurrencies on March 4, 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. A bullish sign: Bitcoin is on the verge of breaking out.
  2. Bitcoin Cash, IOTA , and Ethereum are in consolidation patterns.
  3. Litecoin is still making lower highs.
  4. Dash is trending downwards in a channel.
  5. Ripple is settling into a sideways consolidation range.

4:20 am. A bullish sign: Bitcoin is on the verge of breaking out.
Most major cryptocurrencies are stuck in a bearish pattern of “lower highs”. Bitcoin is on the verge of breaking out. If it does breakout, then Bitcoin will have made a “higher high”. This will be a big bullish sign.

4:10 am. Bitcoin Cash, IOTA, and Ethereum are in consolidation patterns.
Bitcoin Cash and IOTA are still in a bearish pattern of “lower highs”. However, they are continuously finding support on their 200 daily moving averages. Neither bulls nor bears have an edge here. Trend followers should watch from the sidelines for a sustained breakout or breakdown.


Ethereum is being supported by higher lows but also facing resistance via lower highs.

3:41 pm. Litecoin is still making lower highs.
Litecoin hit its 200 sma, bounced, and then turned its 50sma into support. That’s bullish price action. However, it is still making a bearish pattern of lower highs. Neither bulls nor bears have an advantage here. Trend followers should stay in cash.

3:36 pm. Dash is trending downwards in a channel.

However, Dash is consistently finding support on its 200 daily moving average. There is no breakdown yet. Neither bulls nor bears have an edge right now. Trend followers should wait for a clear breakout or breakdown.

3:30 pm. Ripple is settling into a sideways consolidation range.
Ripple is settling into a sideways consolidation range after bouncing on its 200 daily moving average.

Neither bulls nor bears have an advantage here. You can see that in the past, Ripple can swing sideways for a VERY LONG TIME.

Read more about cryptocurrencies on February 28, 2018.

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