*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
- Ripple’s rally is completely dead.
- Bitcoin is hugging its support trendline.
- Litecoin’s range continues to shrink.
- Ethereum’s rally is intact despite the 2 day pullback.
3:38 pm. Ripple’s rally is completely dead.
Ripple will probably sink into a consolidation pattern, just like all the other cryptocurrencies. Cryptocurrencies can remain within consolidation patterns for weeks, if not months. That’s why traders should avoid Ripple right now. Wait for a breakout or breakdown.
8:12 am. Bitcoin is hugging it’s support trendline
You can interpret this as a small bearish sign or a small bullish sign.
- Bitcoin continues to find support on its rising trendline (bullish).
- However, Bitcoin has a hard time bouncing off of this support trendline (bearish).
Neither bulls nor bears have an edge here. Trendfollowers should wait for a breakout in Bitcoin before going long.
8:17 am: Litecoin’s range continues to shrink.
Litecoin is making higher lows but lower highs. Neither bulls nor bears have an edge here. Wait before buying.
8:18 am: Ethereum’s rally is intact despite the 2 day pullback
Ethereum has made a small pullback over the past 2 days. Its rally is completely intact because it hasn’t broken below close stop losses like the 9 ema yet.