It was an exciting week for crypto traders. It seems like there are an ever-increasing number of traders joining the party doesn’t it? Given that just a year ago there was just a handful of traders compared to now, and we still have not even scratched the surface of the number of traders out there still trading Forex exclusively, the future seems bright indeed. To do well, all you have to do is make sure you don’t make a mistake that wipes out your trading account and forces you out of the game. (At the risk of sounding like a broken record, the best way for new traders to lose everything is to use leverage before they are seasoned traders.)
If you miss a “trade du jour”, my advice is don’t chase it. I know it sucks to be in a trade and then see a different coin is going through the roof while yours is stuck in the mud. Happened to me this week – I missed the ETH party. But if you chase a trade after the fact, you are highly likely to buy a high. There will be another trade tomorrow, and another the day after that, and the next… If you miss one, try not to get greedy and/or impatient – just catch the next trade. If you just stay in the game, IMHO, you stand a good chance of doing very well for yourself. There is a ton of money flowing into the altcoins, and we are still in the very early stages of what might be a bull market they will write about in the history books – IMHO.
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I believe XBT is finally approaching the end of it’s present historic run. There are 2 arcs, a short-term 3rd, and a long-term 5th, very close by (~ $2100). I always counsel others, and myself, to never short a bull market. But I might make an exception in this case, if I am feeling brave enough. This 12 hour chart is screaming out a major warning to longs.
Dash has too little data on kraken for a long term look at the chart. But the short term chart shows a retracement at the 4th arc. A little more pullback and a new advance to the 5th arc will like begin. There is a number of reasons to believe that 5/27-5/28 will be a significant energy point for DASH. It is too soon to tell if it will be a high, low or acceleration. But mark it on your calendar.
Regretfully I missed this rally. By the time I noticed it, price was too close to the 3rd arc to buy it. However, my guess is that price will get through the arcs to go to the 5th arcs. Target ~$165. (Last week we identified $130 as a next target. This rally was stopped at $129). I see there is an energy point due tomorrow (red vertical line). Maybe that is the time to watch. I suggest waiting for a close above the 3rd arc, but aggressive traders might risk buying here.
LTC was a bit of a disappointment this week. We tweeted the low was likely in at $21, and it was. The subsequent rally to $29 was exhilarating, but that 1st arc pair stopped the party, and then the top of the square provided a ceiling. Then the money moved to ETH I suppose… Lets see when/if this coin can get through those arcs…
We tweeted that the low was likely in at .28, and indeed that was the low. Since then there was a rally that brought XRP back to the same arc that crashed the party several days ago. The arc stopped the rally again. My guess is that it will get through the arc soon and rally again. My suggestion is to wait for a close above the arcs though. It could fall again here.
ZEC closed above the 2nd arc before falling back. This suggests to me that the arcs are weak and will yield on the next test. I suggest waiting for confirmation. However, a rally to the 3rd and/or the 5th arcs is likely in the week ahead.
XMR rallied hard into the 5th arc of a longer-term setup. At this writing it is sitting just below the 5th arc. It is too soon to say if this is a double top or not (could be!), so my suggestion is to take profits here, if you are long.
Remember: The author is a trader who is subject to all manner of error in judgment. Do your own research, and be prepared to take full responsibility for your own trades.