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 — Lower without negative D is playing out which means that this is likely not a flat that has occurred. The reversal is in and lower is expected with two options. A retest of the low OR we see the alternate which is at the last ceiling. Floor ceilings are typically occur on major turns, and this one comes in at 4190. Watch for an X wave retest this week and lower prices.
ETHUSD — No divergence on ETH either which now is heading directly lower into a retest of the low. I am expecting ETH to be the weakest of the three and we should see early support at 126 OR a full retest of the low. Cycles are no help here so using the Monthly S1 right now as a guide for the retest. RSI is incomplete to the downside.
LTCUSD – No catch up this week as the market leader on this advance is heading lower directly with no negative D setup. Looking for a 5-3-5 structure lower into the 100% fib. So the first 5 down is completing now into 60.17, retest, then the second 5 down into the target area around the R1.
I was looking for a break lower last week after a high retest and just goes to show nothing works 100% of the time in trading. Watch the market leader here LTC for the first five down to see the wave B and then lower to targets. My cycles were clear into the 4-19 cycle high which worked out pretty well from the low. I am waiting for some clarity which I will hopefully have next week. Trade Smart and Trade Safe.