Crypto-Currencies: Bitcoin, Litecoin and Ethereum for May 23rd

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 — This week BTC saw the lower low option and exceeded the 42000 target as Crypto’s have deeply retraced.  On the next decline of the USD expect a rally on Cryptos as this  decline is just a retracement on BTC. Likely this is a flat type structure and can see a lower low first for a wave 5 of C before reverting higher. 78,554 is target and this week I am expecting a turn.

 

ETHUSD – As mentioned we have seen another legg lower and it appears we are close to a turn. A marginal lower low for wave 5 of C can still play out. I would expect the next rally to begin from this area. I am looking for a long setup this week A double bottom setup is likely here. More upside is expected and I am still bullish Cryptos.

 

LTCUSD – LTC has been the deepest decline in percentage terms and the expanding diagonal structure gave clues a few week ago. LTC can rally directly as we are touching the base trend line. Watch the USD for clues as I am expecting another decline in the Dollar.  I am looking for more upside here longer term.

 

The retrace has played out and we are at a base trend line on LTC.  Look to scale back into positions as we may see a a turn this week driven by the USD. BTC is the least impacted by the decline and the flat strucitre calls for a reversal. I do expect Cyptos to continue to advance as the DX will continue to be devalued for the next year or more. All retracements are a buying opportunities. More volatility to come. I remain bullish Crypto’s. 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.

23rd May 2021

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