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 — Wave C last week did not play out as expected. We made our March target in the 23,000 area much earlier than expected. We are stretched to the upside and BTC had a wave 3 play out to the upside so a red dot on the chart is a sign of being on the wrong side of the call. Fortunately not many of these on the chart and currently we are at a weekly resistance trend line. We are near a turn here as we should see higher this week into perhaps the R2. The key here is the negative D on RSI and a consolidation and minor higher high. This will trigger a pullback which may not start until next week. I remain bullish into March of next year and would advise taking profits and slimming positions down to trailer side here.
ETHUSD – Bullish move here too but unlike BTC, we are at the R1 and expecting a short setup this week with negative D on RSI. I remain bullish into March, more upside to come after a pull back ensues likely next week.
LTCUSD – Nice consolidation and squeeze higher on LTC. Should see a marginal higher high and look for a pull back next week into $97-100 I am still expecting a higher high into March as discussed.
Crypto’s have all squeezed last week and are near or at resistance. A minor higher high is expected and profits should be taken here as a pull back will provide another opportunity to add size. Slim down to trailer size and plan to add size in the new year. I remain bullish Crypto’s into March of next year. Trade Smart and Trade Safe.
20th Dec 2020