Crypto-currencies are now mainstream trading instruments. I am providing charts in this blog on a weekly basis. I plan to cover just three cryptos: bitcoin, litecoin, and ethereum. The point of this weekly post is to show the crowd psychology behind the price movement to support high-quality trades.
BTCUSD – last week, as discussed, bul had to perform and 7700 a critical support level needed to hold. It had broken and we are on a band ride lower. A break of 7700 opens lower prices into 4738 by 4-15. We are still in a B wave and the short bus is full. A short squeeze is brewing. In the range of 5445 and 4738, we should start to see some buying.
ETHUSD – As mentioned last week, we broke a critical support level at 470 which now opens lower prices into 290s. This is still a B wave and in the next two weeks, I am looking for a reversal pattern and a turn. RSI is oversold so a bounce into weekly pivot is likely at 435s before we see lower prices. We have broken the base trend line which is not bullish.
LTCUSD has held up the best of the cryptos and as mentioned last week, a critical support level has been broken at $152. This will open up lower prices into the 97-100 area and may complete wave 2 – any break lower and we risk seeing $50 next. RSI is oversold and the short bus is full on LTC. In the next two weeks, I am expecting a squeeze higher; watch for a trend line break toward the middle of the month.
Base trend lines have been broken or are now being challenged. A relief rally is brewing into the middle of April and should result is a decent squeeze. For now, I am expecting lower prices into mid-April as we are now on a band ride lower.
01st Apr 2018