Crypto-Currencies: Bitcoin, Litecoin and Ethereum for December 20th

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.

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.

20th Dec 2020

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