Crypto-Currencies: Bitcoin, Litecoin and Ethereum for May 5th

Crypto-Currencies: Bitcoin, Litecoin and Ethereum for May 5th

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 — Time for a new forecast as the previous forecast was based on the pattern/structure being a retracement with a  flaggy structure in three waves. A new high last week confirms we now have a more bullish structure, similar to LTC, and we will likely still see a retest, but only into the monthly S1. So this week I am expecting continuation higher to finish the negative D setup on RSI and a reversal in the R1 area which is 5929 – look for a retracement 50% back or so into 4200 area.

 

ETHUSD — Same forecast on ETH, while this has not yet put in a higher high like BTC and has been lagging other cryptos, we should see continuation higher to match Bitcoin. Looking into the 200-220 area for wave 5 here before the retest.

 

LTCUSD – While LTC has had a deeper retest, it is still way ahead of other cryptos in terms of gains. Watch this week for a conversion of the blue line, the monthly pivot, and continuation into a new high which will set up negative D on RSI.

 

The structure has changed last week as a result of the BTC rally. The retest will still happen, but likely from higher prices. Watch for resistance as outlined above and look for the short trade when it is set up. I would recommend that counter trend trading a crypto is not beneficial to your portfolio. Suggest day trading shorts positions once we reach the high. Trade Smart and Trade Safe.

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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