*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 retraced 38.2% of its entire decline. Standard bear market rally.
- Bitcoin Cash, IOTA, Ripple and Dash have turned prior support into resistance.
1:19 pm. Bitcoin has retraced 38.2% of its entire decline. Standard bear market rally
Bear market rallies usually retrace 38.2%-50% of the entire bear market. Bitcoin has done just that and is now starting to fall.
Bitcoin has almost approached its 50 daily moving average. This was solid support on the way up and now should be solid resistance on the way down.
Bitcoin is still stuck in a bearish pattern of lower highs and lower lows. This is normal for a bear market. If Bitcoin breaks above $12,000, that will be the first sign that Bitcoin’s bear market is over.
1:18 pm. Bitcoin Cash, Ripple, IOTA, and Dash have turned prior support into resistance
These major cryptocurrencies are falling after hitting their prior supports. These previous support levels have now turned into resistances. Bearish.
Here’s Bitcoin Cash.
In addition, all of these cryptocurrencies are stuck in a bearish pattern of lower highs and lower lows. Trend followers should not buy these cryptocurrencies now.