*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
- Ethereum is trying to stabilize
- Ripple has retraced less than 38.2% of its bounce.
- Bitcoin’s bounce is extremely weak.
10:03 am. Ethereum is trying to stabilize
After breaking down below its 9ema, Ethereum is trying to stabilize.
We don’t know if the bubble in cryptocurrencies is over. Hence, trend followers should wait until Ethereum makes a new all-time high before buying.
9:51 am. Ripple’s bounce is extremely weak.
After crashing over the past 2 weeks, Ripple has made an extremely weak bounce which didn’t even retrace 38.2%.
Trend followers should stay away from Ripple.
9:37 am. Bitcoin’s bounce is extremely weak.
After breaking down below a major support, Bitcoin attempted to bounce. Bitcoin’s bounce has now turned prior support into resistance! This is not a bullish sign.
Trend followers should not buy Bitcoin right now. We don’t even know if Bitcoin will make a new all-time high or not. If not, then Bitcoin’s bubble is over.
Read Cryptocurrencies on January 18, 2018