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 am still expecting BTC to decline further. Last week there was a small retrace as a three back into the blue line, the monthly pivot at 6888 which I am expecting to hold. Lower prices to 5400 and possible 4800 are likely. The declining resistance trend line is key, just above the monthly pivot which must hold as resistance.
ETHUSD — Target has been achieved at the $168 target as mentioned last week. Lower is still likely as we have a three back in a flag. At a minimum, a retest of the low is likely, and a lower low is possible here into 147-142. I am expecting positive divergence on RSI when the low is in. Cross the monthly pivot and chances are we have turned and a major low may be in.
LTCUSD – We have seen the low below $49 as discussed last week, appears to me that we need one more lower low to finish the pattern. Currently expecting at least $47 and positive D on RSI. We may still see 40.46. A lower trend line touch is ideal for a reversal.
Since my post back on Sept 2nd, we have been on a steady decline in Cryptos. The back test last week will eventually retest the low which may create positive D on RSI which would be an encouraging sign to buy. Until then, I am waiting for a reversal pattern to set, still a little early. Trade safe.