Crypto-currencies are now mainstream trading instruments. I am providing charts in this blog 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.
BTCUSD — last week, as discussed, 7700 had broken and we are on a band ride lower. A break of 7700 opens lower prices into 4-15. It appears to me that we have a 5-3-5 structure and are in the last wave lower so looking for a lower low and expecting positive D here on RSI and a reversal pattern this week. A short squeeze is brewing.
ETHUSD — As mentioned last week, we broke a critical support level at 470 and RSI is oversold so a bounce into weekly pivot is likely. I need to see a lower low first. Once seen, that will set up nice positive D on RSI and I am expecting higher prices. A reversal pattern like an IHS after seeing a lower low is a buy here.
LTCUSD has held up the best of the cryptos and as mentioned last week. Here a lower low generates positive D and create a decent setup for a long. Break of the trendline confirms a turn. RSI is oversold and the short bus is full on LTC. In the next week, I am expecting a squeeze higher; watch for a trend line break toward the middle of the month.
Base trend lines have been broken and we are in the last legg lower across these three cryptos. Positive D on RSI should generate a relief rally starting roughly in the middle of April. For now, I am expecting lower prices into mid-April to complete the current pattern.