Crypto-Currencies: Bitcoin, Litecoin and Ethereum for January 3rd

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 — BTC has extended since last week and is in a wave Y which sometimes extends further than expected. Negative D on RSI has broken which is a sign that we may see a small pull back and higher high before a reversal. BTC is in need of a pullback and higher prices into March as discussed. I remain bullish and am looking for a retest of the broken resistance trend line.

 

 

ETHUSD – A higher high here also and negative D on RSI is holding. Looking for a reversal into the end of January and higher into March 18th.  Completing a wave Y here and retest may be shallow to the top of the previous degree wave Y.  I remain bullish into March, more upside to come after a pull back/ consolidation completes.

 

 

LTCUSD – Wave Y may be complete here with negative D setup on RSI and likely we see a pull back and higher highs as discussed. I have extended the target to the 100% fib here as we have the time to get there. Watch for 112 as a support area. I am still expecting a higher high into March as discussed.

 

Crypto’s have all made higher highs since last week and they have extended which wave Ys sometime do. Negative D on RSI for ETH and LTC and a decision this week. Either we break Negative D on ETH and LTC and continue higher (lower odds) or we see a sell of this week and start a  consolidation and another big move higher. Take some profit here and hold a small position long and add size lower. 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.

03rd Jan 2021

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