Crypto-Currencies: Bitcoin, Litecoin and Ethereum for January 7th

Crypto-Currencies: Bitcoin, Litecoin and Ethereum for January 7th

Crypto-currencies are more mainstream and I am providing charts on this blog on a weekly basis. I plan to cover just three cryptos: Bitcoin, Litecoin, and Ethereum. The point of the weekly post is to show the crowd psychology behind the price movement and to find profitable trades among these instruments. These instruments are now easily tradeable through the CBOE and ETFs.

$BTCUSD broke above the middle band as discussed last week and I am expecting another upper band ride into the next target area in the 22353 area. BTC is behind ETH and ETH is already well into wave 3.

ETHUSD had a large rally last week and is a step ahead of BTC and LTC. ETH with likely retrace from here into a 4th wave then finish higher while LTC and BTC play catchup. I continue to notice the rotation of fast money among these three. I would expect BTC to play catchup this week and the ratio charts below to show this into next week.

LTCUSD is behind and lagging the other two in the next 5 wave sequence. I am expecting the ratio chart below to show support and LTC to have another large 3rd wave expansion sometime after BTC.

On the ratio charts, I would expect BTC to lead the way to the upside and the ratio charts for LTCBTC and ETHBTC to decline. Currently, I am expecting this on LTCBTC and we will see if the ETHBTC resolves into an inverted head and shoulder pattern.

The crowd is still getting into the instruments so I don’t see a bubble popping yet—more to come next week.

 

About the Author

Stan Nabozny
Stan is a 20 year retail trading veteran and Co-Founder of The Art of Chart. A registered Commodity Trading Advisor, his specialties include using futures and options to trade Energies. Precious Metals, Equities, Currencies, Bonds, Softs, Grains and other commodities. Stan believes that Risk Management and Trader Psychology are more important that technical analysis and spends his time teaching and coaching other traders on these topics . Stan uses various trading systems and technical analysis approaches that integrate time and price in his work. See his latest articles here and www.huffingtonpost.com.

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