Crypto-Currencies: Bitcoin, Litecoin and Ethereum for May 12th

Crypto-Currencies: Bitcoin, Litecoin and Ethereum for May 12th

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 — I was expecting a higher high last week and we exceeded target primarily due to a money rotation out of China and into BTC. The tariff situation has create a run from the stock market and also from CNY.  This has pressed prices higher and we have printed a Doji on the Daily chart. BTC has set up negative D here which could break but if it holds, the lean here is for a reversal and lower prices for a retest then higher highs. Watch for 5900 on the retest.

 

ETHUSD — Same forecast on ETH, we have made a higher high, we have hit the trend line, and we can reverse from here into the monthly pivot for the retest. This chart has more symmetry than BTC, nice negative D, looking for a reversal this week and a retest of at least monthly pivot.

 

LTCUSD – While LTC has had a deeper retest, it is still way ahead of other crypto’s in terms of gains. No new high has occurred but I am expecting continuation higher to a new high to set up the negative D. Watch for support at $72.

 

The tariff situation with China is going to have global impacts and in the Crypto markets, we should see an increase in volatility. If we see the next 25% increase that Trump has mentioned, then expect a global recession and money rotating in and out of Cryptos frm China. The Chinese stock market may see 2015 lows of we see the next tariff put in place. Suggest day trading this short, as the tenor of the trade talks changes, we can see further upside in this sector. 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. 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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