Crypto-Currencies: Bitcoin, Litecoin and Ethereum for May 19th

Crypto-Currencies: Bitcoin, Litecoin and Ethereum for May 19th

I plan to cover just three cryptos every week in this post: Bitcoin, Litecoin, and Ethereum. These instruments provide trading opportunities with out sized gains. I hope the analysis presented here helps you profit in these instruments.

BTCUSD — I was expecting a move lower after making the higher high last week and it is playing out as expected. We can still see wave C lower into 6300. I discussed last week the tariff situation and the CBoC limiting the withdrawal of USDs from Chinese banks so a lot of money is being rotated onto BTC. That makes this rally fragile as once the trade war is resolved, we will likely see a larger retracement on BTC. With a trade war, expect BTC to rally as one way to avoid the currency collapse in China.

 

ETHUSD — Same result on ETH, higher high and now retest and a three back expected. Once complete, expect continuation higher.  Looking for a retest of the monthly R1 at 179.

 

LTCUSD – As expected, LTC played catch up and made a higher high and set up negative D. I am now looking for a retest to complete in a three back. Watch for support at $77.

 

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 continuing to rotate into Cryptos from China. Keep in mind this Crypto rally is fragile, see a resolution to the trade war and we see a retest across the cryptos. The Chinese stock market may see 2015 lows if we see the next tariff put in place which will be more motivation for money rotation.  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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