*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
- Dash is turning prior support into resistance.
- Ripple is channeling lower.
- Litecoin is still channeling lower.
- IOTA may be turning prior support into resistance.
- Bitcoin Cash’s bounce is very weak compared to that of other cryptocurrencies.
- Don’t buy Ethereum. Other cryptocurrencies may drag it down.
- Do not chase Bitcoin’s bounce.
1:25 am. Dash is turning prior support into resistance, just like many of the other major cryptocurrencies.
Trend followers should not buy Dash unless it makes a new all-time high.
1:23 am. Ripple is channeling lower.
Ripple is not making a bull flag. In a bull flag, the market either swings sideways or goes down a little. Ripple’s trend is decisively down. Avoid Ripple unless it makes a new all-time high.
1:16 am. Litecoin is channeling lower.
Litecoin’s trend is still decisively down despite today’s bounce. At the very least, trend followers should wait until Litecoin breaks above its resistance trendline before buying.
8:45 am. IOTA may be turning prior support into resistance.
Like Bitcoin, IOTA may be turning prior support into resistance. This is a bearish sign. Trend followers should not buy IOTA right now.
8:37 am. Bitcoin Cash’s bounce is very weak.
After breaking down below its prior range, Bitcoin Cash is making a very weak bounce. Don’t buy here because you don’t know if Bitcoin Cash’s decline is over.
8:33 am. Don’t buy Ethereum.
Ethereum has completely broken down from its 9 ema support.
Don’t buy Ethereum right now. If other cryptocurrencies like Bitcoin continue to fall, their decline will drag Ethereum down as well.
8:28 am. Do not chase Bitcoin’s bounce.
In all honesty, nobody knows if Bitcoin’s bubble is over or not. It’s a 50-50 wild bet. Bitcoin has broken down from its prior support and may be turning this into resistance. Bitcoin has made a lower low (bearish sign).
Trend followers should wait until Bitcoin makes a new all-time high before going long. If Bitcoin can’t make a new all-time high, then you know that its’ bubble is over. Trade safe and manage your risk.
Read Cryptocurrencies on January 17, 2018