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 — Pull back as expected two weeks ago and last week a move toward a higher high as expected. Looking for a short setup this week once we see the higher high and negative D on RSI. The structure from the low is a megaphone and we are likely to retest the low on the next legg lower. Also watch the alternate target at the monthly R1. We should make the higher high this week.
ETHUSD — Pull back here and a turn towards a higher high as expected. Needs to finish this week and set up a negative divergence on RSI for a reversal. Chances are we see a full retest of the low. For now this week, expect higher prices and look for the short setup.
LTCUSD – Both BTC and ETH made progress towards the higher highs last week, LTC has not. It needs to play catch up this week, still expecting the higher high. The timing window is the 19th and with the weekend, that gives us two trading days where I am looking for the higher high and negative D on RSI. The monthly S1 should hold as support on the next legg lower.
As I said last week, so far so good, pullback as expected higher high still needed to set up negative D on RSI and then the reversal. Looking for a break lower sometime next week, for now lean long. Trade Smart and Trade Safe.