Crypto-Currencies: Bitcoin, Litecoin and Ethereum for May 26th

Crypto-Currencies: Bitcoin, Litecoin and Ethereum for May 26th

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 — Still expecting a pullback in a C wave into 6300-6600. I discussed last week. Once we see the pullback expect a higher high and another rally.  The tariff situation and the CBoC limiting the withdrawal of USDs from Chinese banks so money is being rotated onto BTC. With a trade war, expect BTC to rally as one way to avoid the currency collapse in China.

 

ETHUSD — ETH has not pulled back, it is compressing for a move lower. Looks like a triangle is forming and likely the same fate as BTC, lower prices expected in the short term. I am looking for a retest of the monthly R1 at 179. Once the pullback is complete, look for new highs which should occur by the end of July.

 

LTCUSD – A retest of the high and much like the other Cryptos, expecting an expansion lower into $77. LTC has been the largest gainer so far from the turn, I expect it to continue to perform well and am looking for a new high once the pull back completes.

 

The Cryptos are compressing here in what appears to be a triangle. I am expecting a larger pullback before we head higher. AS he tariff situation continues, we should see money continue to roll out of China. The tariff situation with China is going to have global impacts. 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 move lower across the Cryptos. 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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