Crypto-Currencies: Bitcoin, Litecoin and Ethereum for April 8th

Crypto-Currencies: Bitcoin, Litecoin and Ethereum for April 8th

Crypto-currencies are now mainstream trading instruments. I am providing charts in this blog on a weekly basis. I plan to cover just three cryptos: bitcoin, litecoin, and ethereum. The point of this weekly post is to show the crowd psychology behind the price movement to support high-quality trades.

BTCUSD — last week, as discussed, 7700 had broken and we are on a band ride lower. A break of 7700 opens lower prices into 4-15. It appears to me that we have a 5-3-5 structure and are in the last wave lower so looking for a lower low and expecting positive D here on RSI and a reversal pattern this week. A short squeeze is brewing.

ETHUSD — As mentioned last week, we broke a critical support level at 470 and RSI is oversold so a bounce into weekly pivot is likely. I need to see a lower low first. Once seen, that will set up nice positive D on RSI and I am expecting higher prices. A reversal pattern like an IHS after seeing a lower low is a buy here.

LTCUSD has held up the best of the cryptos and as mentioned last week. Here a lower low generates positive D and create a decent setup for a long. Break of the trendline confirms a turn. RSI is oversold and the short bus is full on LTC. In the next week, I am expecting a squeeze higher; watch for a trend line break toward the middle of the month.

Base trend lines have been broken and we are in the last legg lower across these three cryptos. Positive D on RSI should generate a relief rally starting roughly in the middle of April.  For now, I am expecting lower prices into mid-April to complete the current pattern.

 

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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