*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 is on the verge of breaking down.
- Ethereum’s pattern is relatively more bullish than that of other cryptocurrencies.
- Bitcoin is breaking down (again).
7:44 pm. Ripple is on the verge of breaking down.
Ripple made an extremely weak bounce that didn’t even retrace 38.2%. Ripple is now retesting its prior lows and is on the verge of breaking down. Trend followers should not buy now. Other cryptocurrencies like Bitcoin are already going down. If the bubble in crypto is over, expect the majority of cryptocurrencies to fall 60%, 70%, or even 80%.
1:51 pm. Ethereum’s pattern is relatively more bullish than that of other cryptocurrencies.
Unlike other cryptocurrencies such as Bitcoin, Ethereum is still making higher lows. But trend followers should wait until Ethereum makes a new all-time high before buying. A crash in Bitcoin and other cryptocurrencies would drag Ethereum down.
1:45 pm. Bitcoin is breaking down again.
Bitcoin’s price action is very weak. When stocks and other assets are going up, Bitcoin isn’t rising. When stocks are going down (like today), Bitcoin is falling.
As I stated in previous cryptocurrency updates, Bitcoin’s pattern is bearish. It is now breaking down. If Bitcoin breaks down below $9200, its’ likely target is $7600 (the 200 daily moving average).
Read Cryptocurrencies on January 29, 2018.