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 — Triangles are indecision patterns. We have been discussing this pattern for the last few weeks. So far triangle support is holding and this appears to be a bullish setup. I have cycle dates higher into 8-3 and also November 5th. I am expecting a turn, a break of triangle resistance, a back test of the triangle itself which is typical triangle dynamics, then the thrust higher into the cycle dates already mentioned. We can still break down out of this triangle, so mind your risk. This would easily open the 4700 area on Bitcoin. This is a significant inflection point, my lean is bullish.
ETHUSD — No triangle on this crypto, just a low that is likely in. Retest of the low is in progress and as per my comments above, I am expecting a rally here also. 8-10 the next high window. A break of the low open a full retest of wave B. This week is an important decision point for cryptos.
LTCUSD – Same comments here regarding this triangle, looking for two support areas, Friday’s low and also the S1 at 91.46. Break 91.46 we can open lower lows to $60 easily. I still like the structure as a basing pattern which should lead to a move higher. This week should give us a signal one way of the other. The lean for now is higher into the August 5th date,
Consolidation patterns and basing patterns take time. I have been discussing this setup now for weeks, it is now mature and the decision is upon us. Mine your downside risk as a serious break here will drive a capitulation move. The lean is higher until proven otherwise.