Crypto-Currencies: Bitcoin, Litecoin and Ethereum for January 21st

Crypto-Currencies: Bitcoin, Litecoin and Ethereum for January 21st

Crypto-currencies are now mainstream trading instruments and so I am providing charts on a weekly basis. 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.

BTC broke lower and penetrated the third standard deviation bollinger last week. This has not happened very often in the recent past as the upper bollingers have been the focus. I am expecting a rebound and higher priced from the possible completion of wave B. This is likely the completion of a mean reversion move. Any cross below the 200dma would signal lower prices, so expecting the 20dma to hold here. The middle band should convert this week into support.

ETHUSD has completed its rally and may have completed the wave 4 retracement from the rally. A retest of the low may happen early this week. I am still expecting higher prices and eventually a new high.

LTCUSD is behind and lagging the other two in the next 5 wave sequence. This is likely to provide a confirmation of the next impulse higher this week upon converting the middle band into support. I am still expecting new highs in the near future.

The ratio charts below show parity between these three instruments. BTC should lead the way higher this week. I will be looking for other opportunities if and when these charts become askew.

We are still at the beginning of a new currency which is likely going to go through many changes in the next few years. Some of these will die and other will have enormous moves. The crowd is still getting into the instruments so I don’t see the bubble popping yet. More to come next week.

 

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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