Crypto-currencies are now becoming more mainstream and I am providing charts on this blog on a weekly basis. I plan to cover just three cryptos: Bitcoin, Litecoin and Ethereum. The point of the weekly posts is to show the crowd psychology behind the price movement and to eventually find profitable trades among these instruments. These instruments are now easily tradeable through the CBOE and ETFs.
Last week I marked the finish of the Black wave 3 in $ETH and $LTC and this past week we saw a clear Black wave 4 with a rejection at support on BTCUSD, ETHUSD, and LTCUSD. All three have shown clear support and I am expecting a rally and new highs in all three. Interesting to note that the rotation out of BTC into ETH and LTC began wave 4 for BTC. We may see this again in the future.
New highs are expected, BTCUSD around 22000-22500, ETHUSD 950-1000 and LTCUSD 420-460. I am looking for Negative Divergence in RSI for a short setup when we get in those target areas.
No meaningful shift in ratio charts this week, as the rally advances, I would expect BTC to lead the way and the ratio charts for LTC and ETH to decline.
With the third wave over, likely the last wave will be more overlapping and choppy. I am expecting a new high in January followed by a larger correction. More charts next week…