Crypto-Currencies: Bitcoin, Litecoin and Ethereum for February 4th

Crypto-Currencies: Bitcoin, Litecoin and Ethereum for February 4th

Crypto-currencies are now mainstream trading instruments and so I am providing charts here on a weekly basis. I plan to cover just three cryptos: Bitcoin, Litecoin, and Ethereum. The point of this weekly post is to show the crowd psychology behind the price movement to support high-quality trades.

BTC broke lower last week and hit the third standard deviation bollinger. This is the second time in the last month which has extended the wave B to a lower low. BTC is likely finding support at 7686 and should rally and convert the middle band at 10547. If seen we are beginning at least a retest of the monthly pivot and best case a new 5 wave sequence higher into 21900.  We will see how it performs. I am expecting a conversion of the middle band later this week. The low window I have runs from 1/25 until 2-9 so we are almost out of time this week on my cycle system. Still, in the experimentation phase, I want to see how this performs over the next 2-3 months on BTC.

ETHUSD has completed its wave 4 in black and may be starting its next legg higher.  Convert the middle band at 1038 an it is likely beginning the next legg higher. There is risk of a lower low to the trendline at 635. Convert middle band, we head higher to 1565.

LTCUSD has extended lower last week as well for wave B and is currently testing the middle bollinger. Chances are that we will convert 173s and we may see LTC lead to the upside across these three instruments. If we convert middle band and monthly pivot into support, we likely see the 210-212 are.

The ratio charts below show parity between these three instruments. The chart shows that LTC and ETH should outperform BTC in the coming weeks.

There is a rally setting up here with the lower low on these charts. While the ratio charts are favoring LTC and ETH, they may turn first and begin the next band ride higher. Watch for a conversion of he middle bollingers this week.

 

 

About the Author

Stan Nabozny
Stan is a 20 year retail trading veteran and Co-Founder of The Art of Chart. A registered CTA (Commodity Trading Advisor), his specialties include using futures and options to trade Commodities, Equities, Currencies, Precious Metals and Bonds. 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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