Crypto-Currencies: Bitcoin, Litecoin and Ethereum for January 14th

Crypto-currencies are becoming mainstream trading instruments so and I am providing charts on a weekly basis on this blog. I plan to cover just three cryptos: Bitcoin, Litecoin, and Ethereum. The point of the weekly post is to show the crowd psychology behind the price movement and to find profitable trades among these instruments.

The ratio charts are of particular interest this week as we continue to see the rotation of fast money in and out of these instruments. Last week money poured out of Bitcoin and into Ethereum. We have returned to the mean (50% area) which means the rally in ETH is likely complete. The ratio chart for LTE shows the next rally has not started yet.

$BTCUSD broke below the middle band as discussed last week and is currently at trendline support. I am expecting another upper band ride into the next target area in the 22353 area. BTC is behind ETH and ETH is already well into wave 3.

ETHUSD has completed its rally last week and is a step ahead of BTC and LTC. A clear divergence has formed on RSI and likely ETH will likely retrace from here into a 4th wave then finish higher while LTC and BTC play catchup. I continue to notice the rotation of fast money among these three. I would expect BTC to play catchup this week.

LTCUSD is behind and lagging the other two in the next 5 wave sequence. It has formed a classical triangle and I am expecting continuation to the upside. I am expecting the ratio chart below to show support and LTC to have another large 3rd wave expansion starting this week.

The crowd is still getting into the instruments so I don’t see the bubble popping yet. We have not seen markets like this before and I continue to be interested in the divergence setups and how crowd p[psychology will play out this year. More to come next week.


Written by:

Stan Nabozny

Stan is a 20 year retail trading veteran, CTA (Commodity Trading Advisor) 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

14th Jan 2018

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