Crypto-Currencies: Bitcoin, Litecoin and Ethereum for December 6th

I plan to cover just three cryptos every week in this post: Bitcoin, Litecoin, and Ethereum. These instruments provide trading opportunities with out sized gains. I hope the analysis presented here helps you profit in these instruments.

BTCUSD — Retesting the high and RSI has already indicated the decline for a retest has started. Likely this is a wave B playing out and looking for a 5 down to the previous low or the S1 for wave C and completion of the retracement.  The decline is expected to continue into 16345 or the broken rising resistance trend line. Watching for a completion of the retracement and then higher highs into March as discussed. The trend line that has been overthrown is possible support, I am expecting the floor ceiling just below.

 

ETHUSD – Much like BTC – may be a retest of the high and now setting up negative D or could be wave B – either way retracement is needed and the floor ceiling  to the previous swing low is possible here. This is an extremely overbought market and as a result middle band is the minimum target for the retrace. I remain bullish into March, more upside to continue.

 

 

LTCUSD – Retest of the high and RSI is exactly like BTC – likely a B wave here and looking for the completion of the retracement into the previous low. Once seen, this and the other cryptos are a buy into March.  Expecting lower into $65 then a higher high into March as discussed.

 

Crypto’s have all retested the high which is a bearish sign given the RSI setup. Looking for a decline this week into the targets already mentioned. Buy the dips by looking for positive D setups on shorter term charts on RSI. I remain bullish Crypto’s into March of next year. Trade Smart and Trade Safe.

Written by:

Stan Nabozny

Stan is a 20 year retail trading veteran and Co-Founder of The Art of Chart. His specialties include using futures and options to trade Energies, Precious Metals, Equities, Currencies, Bonds, Softs, Grains and other commodities. Stan believes that Risk Management and Trader Psychology are more important that technical analysis and spends his time teaching and coaching other traders on these topics. Stan uses various trading systems and technical analysis approaches that integrate time and price in his work. See his latest articles here and www.huffingtonpost.com.

06th Dec 2020

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