Cryptocurrencies on February 15, 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
- 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.