Bitcoin has surpassed our target of $1500 a few days earlier than I anticipated. While I think it is clear that higher prices, maybe much higher prices, are in store for this asset in the months to come, it is likely a good time to take profits if you are a short-term trader. I will go out on a limb here and suggest that this coin is ripe for a significant correction – soon.
There is clearly A LOT of new money coming into cryptocoins of all flavors these days. This cryptocoin bull market is far from over, I suspect. But still, this vertical ascent is unsustainable. More importantly, we have hit a 5th arc, and it was hit exactly, within 8 hours, of a 270 degree (3×90) movement from the low of 8/2/2016. Here is an 8 hour chart:
XRP is on a tear and should be on your radar screen. It has made a new ATH and broke through longer-term resistance to get there. This coin could triple from here. My long term charts suggest the possibility of .25 by mid-summer. However, I see that there was a smaller setup from the April 4 low I had overlooked. Per that setup, pricetime hit a 5th arc last night while I was sleeping, and corrected sharply. It has recovered somewhat, but has not yet re-tested that arc. I believe it will get through it and move much higher, but I am not omniscient, so we will have to wait and see. Here is the 3 hour chart:
Litecoin has done very nicely in the past couple days. It hit our target of $25 last night. As in the case of XRP, I tend to think significantly higher prices are in store for this asset, if it can get through that arc. It is rising to re-test the arc as these words are typed Time will tell. Here is a 15 minute chart:
Ethereum recovered from it’s correction and is at this moment pushing through the 2nd arc of a 3rd pair. I have little doubt that yet another buy signal will be issued soon. My target is a figure that seemed ridiculous just a few short weeks ago. I note now that the 5th arc of this setup intersects the 1×1 angle at $150. I suspect we will see that number within just a few weeks. Here is a 3 hour chart:
Where is all this new money coming from that is pouring into the cryptocoins? I’m not sure. Maybe institutional traders, government players, Joe Sixpack who finally woke up and realized that a small fortune was being made by his 21 year old nephew? Maybe all three. It doesn’t matter. This will likely last at least several more weeks, if not through the summer or beyond. Stay sharp. Markets like this don’t happen every day, though it feels right now like it will never end.
Remember: The author is a trader who is subject to all manner of error in judgement. Do your own research, and be prepared to take full responsibility for your own trades.