*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 Cash and IOTA have turned previous supports into resistances.
- Dash and Litecoin are making lower lows and lower highs
- Ethereum is consolidating.
- Ripple is stuck in a downtrend
- Bitcoin’s range is shrinking
3:22 pm. Bitcoin Cash and IOTA have turned previous supports into resistances
Bitcoin Cash and IOTA are going down in a staircase-fashion. They have turned prior supports into resistances. Trend followers should avoid these cryptocurrencies.
3:18 pm. Dash and Litecoin are making lower lows and lower highs
Dash and Litecoin are firmly stuck in downtrends. They are making lower lows and lower highs. Trend followers should avoid these cryptocurrencies until they make higher highs or a new all-time highs.
3:16 pm. Ethereum is consolidating
Like the other major cryptocurrencies, Ethereum is stuck in a narrow consolidation range. Trend followers should not buy Ethereum right now.
9:52 am. Ripple is stuck in a downtrend
Like Bitcoin’s bounces, Ripple’s bounces are extremely weak. Ripple is firmly stuck in a downtrend. Trend followers should avoid this currency, because no one knows how long Ripple will consolidate before making a new all-time high.
9:48 am. Bitcoin’s range is shrinking.
Not only is Bitcoin making lower highs and lower lows, but it’s range is also shrinking. Bitcoin’s rallies are becoming more and more feeble.
Trend followers should sit on the sidelines right now. I think there’s a >50% chance that Bitcoin’s bubble is over. Worst case scenario, trend followers can buy Bitcoin once it makes a new all-time high. A new high guarantees that Bitcoin’s bubble is still in play.
Read Cryptocurrencies on January 24, 2018.