Cryptocurrencies - My Strategy

BTCUSD

Ahh, Bitcoin.. To me, it's not a good idea to directly trade it against fiat. Why? Because of the low volumes and margin traders. No technical analysis can predict a 10 min 10% move by a whale. You can only guess it's going to happen, but in which direction and when, nope. This said, it's important to keep an eye on the chart to get a general idea of the markets, so here's my quick analysis.

On the 1H chart, I'm bullish on the short term. The 200$ drop on the 20th doesn't mean anything, since it was just preceded by a huge climb, so it sort of balance it. We are still going sideways and price range is narrowing (Band lines become yellow) meaning next band cross will determine the trend.

On the daily chart, we can see the general Down Trend continuing. On the 19th we had a nice break over the 50 day EMA, but people traded against it as a fadeout.

In my scenario I expect a retest of the 3400 area which would create a double bottom which is a strong bullish chart pattern.

ETH/BTC

Ethereum on the 4H chart is looking like it's about to reverse from its two weeks drop. It has been nicely consolidating, but if bitcoin drops it's going to follow.

LTC/BTC

I'm quite bullish on Litecoin. No need for complicated analysis. In daily, we have two major bullish indicators: on the 06th, we had a break over the 200 days EMA with a quick correction. On the 12th, the 50 days EMA crossed over the 100 days and price is forming a nice ascending support line which will indicate the new trend direction.

Written by Cyato - 2019-01-24

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