Crypto-Currencies: Bitcoin, Litecoin and Ethereum for May 20th

Crypto-Currencies: Bitcoin, Litecoin and Ethereum for May 20th

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 — Monthly pivot was broken last week which now opens up a lower low to 7155 and the bottom of a potential triangle. This triangle is key to BTC and the price action for the rest of 2018. There is a 70% chance this triangle breaks up after seeing lower prices to the triangle support trend line. We should then begin the trip higher into the 11,000 price area as a first impulse. This week we should be setting up the decision, 7155 holds we see the triangle break up. If it breaks down we see BTC break down and can easily open 3000.

ETHUSD — ETH is in a small compression here which is likely to break lower into monthly pivot at 580. This should mirror BTC’s movement lower in a three down and set up the rally. Likely this occurs before month end and sets up a big rally higher into 1011.

LTCUSD – We broke monthly pivot last week which sets up a move lower into the triangle support trendline at 123s. There is a 70% chance we break up from this triangle and open the 200 target area after support is demonstrated at the trendline

The two triangles are key to the price action going forward. Likely we see these triangles break up into the June time frame. Any break below the triangle support trend lines signal much lower prices for Cryptos. The support numbers mentioned above must hold and bulls must perform or we will see a major break lower.

 

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 Commodities, Equities, Currencies, Precious Metals and Bonds. 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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