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 — Mentioned last week, we needed lower with a wave 4 and 5 to set up positive divergence. It appears that this is now in place. The low cycle date is upon us this week, so looking for a reversal pattern here around 3574. This appears to be a capitulation move. I am waiting on a reversal pattern as a confirmation before entering long. We are completing wave B which is likely a significant bottom on Cryptos.
ETHUSD — ETH has set up a small 4 and 5 and likely we have either seen the low or we may still see $91. Positive D on RSI is present so as long as this holds we can see a reversal this week. If this breaks, we can open lower prices so wait for a confirmation first. Trade this only on a confirmation of the low.
LTCUSD – Lower as expected and at 28.34 target. This week, looking for a reversal pattern and this Crypto may lead the turn. Will be watching this daily and will post on Twitter the reversal pattern when seen. Likely we will base for a while before seeing higher prices so there will be plenty of time to enter long.
Cycle date is still 11/25. We have seen the move lower as expected and now have set up positive divergence across all Cryptos. Now we are in the turning process, looking for a reversal pattern this week, and being cautious on any longs as this appears to be a capitulation move. Lighten up if you are short and take profits. Trade safe.