*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
- Other cryptocurrencies are still stuck in a consolidation phase. Trend followers should wait.
- Ethereum continues to blast off. Trend followers should stay long.
11:28 am. Other cryptocurrencies are still stuck in a consolidation phase.
Trend followers should wait for a breakout. Do not go long while cryptocurrencies swing sideways because they can swing sideways for months before breaking out (or breaking down).
Get my book!
IOTA is stuck in a very wide range.
Litecoin’s range has become extremely compressed.
Bitcoin’s range is also becoming narrow. Bitcoin is making lower highs and higher lows.
DASH has become compressed into a narrow range. It is now swinging sideways.
11:25 am. Ethereum continues to blast off.
Yesterday I stated that Ethereum’s rally is completely intact. Ethereum is going back up after tagging its 9 ema, which has been good support throughout this entire rally. Trend followers should stay long. A breakdown below its 9ema will be big warning sign that Ethereum’s rally is over.
Trend followers in Ethereum need to be vigilant. One by one, all of the other major cryptocurrencies have gone from rallies to consolidation patterns. Perhaps Ethereum’s run will end soon.