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 — I have not posted in two weeks as I have been traveling. I was looking for a short squeeze and it is playing out. Right now, we are above the middle bollinger, and I expect this to hold as support. Bitcoin is likely on an upper band ride into the 9702 area and I am expecting a retest into the trend line at 7850 or so. If the support test works, we should see a nice impulse higher on Bitcoin into the 12500 area next.
ETHUSD — Squeeze is playing out here as well into the 660-690 area. The retest is key and I am looking for trend line support in the 550 area, then higher prices. If the support test holds, we can expect to see 880-900 next. The key is the middle bollinger band holding on the retest.
LTCUSD has held up the best of the cryptos, and as mentioned two weeks ago. Squeeze is playing out here as well and I am expecting the $180 area next then a retest. On the retest, I am expecting 145-150 to hols as support. If seen we open higher prices into $270 next.
The key going forward is the retest on all Cryptos. Is this a risk on rally or just a short squeeze? The three up and the support test will define if this is the case. Any break of the middle bollinger band and the risk on rally is off.