*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 has several large resistances ahead.
- Bearish price action from other cryptocurrencies.
3:12 pm. Bitcoin has several large resistances up ahead.
- Bitcoin is still hovering around $10,000. This is a psychological resistance.
- Bitcoin’s 38.2% retracement is at $11,300. Bear market rallies frequently retrace and stop at 38.2%.
- Bitcoin is still making a bearish pattern of “lower highs and lower lows”. The previous high was at $12,000. Bitcoin should not break above $12,000 if this is truly a post-bubble bear market. A break above this price is the first sign that Bitcoin’s bubble will continue.
3:12 pm. Bearish price action from other cryptocurrencies
Cryptocurrencies went up today, but Bitcoin went up much more than other alt-coins.
This is bearish price action. Smaller market cap coins should rally more than Bitcoin in a healthy cryptocurrency rally. This is just like a bull market in stocks. Small cap stocks should outperform large cap stocks in a healthy equities bull market.
Here’s Bitcoin Cash. It isn’t confirming Bitcoin’s bounce today.
Here’s Ethereum. It isn’t confirming Bitcoin’s bounce today.
Here’s Ripple. It isn’t confirming Bitcoin’s bounce today.
Read Cryptocurrencies on February 14, 2018.