Market Analysis for Dec 15th, 2017

Everybody's Talking About Bitcoin, But....
By Ryan Wilday, ElliottWaveTrader
December 10, 2017
 
Everyone is talking about Bitcoin! I can't escape the topic in conversations with friends and associates. My oldest daughter even asked me this week, "Dad, why do I keep hearing about Bitcoin?"  You would think there weren't any other cryptos worth buying. When I mention any of the other large caps to friends that don't trade, they've never heard of them. 

In my Crypto Currency long-term model portfolios at ElliottWaveTrader, I have kept Bitcoin out because I don't see it as a long-term hold at this level. I expect we'll have a safe entry in 2018. Yet, I've marked turning points on the hourly chart, both up and down, so nimble members have a chance to scalp them carefully. Many 20-30% trades resulted for the skilled. We will continue to do this until a top is confirmed.

We will likely see Bitcoin come down hard in the coming weeks. Does it coincide with the futures opening in CME, CBOE, or the fact that the masses are rolling in? We don't know for sure. But we've warned about sizing too heavily because we have an obvious blow-off top forming and we are well above all reasonable extensions. Our long-term counts still point much higher as long as our key supports hold, but we want a better entry than chasing the market here and now.

While everyone in the universe is talking about Bitcoin, we've caught major bottoms and seen large returns in LTC, ETH, XEM. IOTA, DASH, XMR, RISE, SHIFT, just to pick a few of the model portfolio positions in our Crypto Currency service. We're now emerging from the first major wave 4 in most of our alternate coins (alt meaning not Bitcoin). The SHIFTUSD chart below, with the end of the correction labeled "iv" in bold, is an example of a chart that is emerging and turning bullish.



Our model portfolios even showed a profit before the wave 4 started to complete, which means we are in a good spot for riding this 5th wave in these alts much higher.

That doesn't mean we aren't taking profits. This week alone, our longer-term big-cap and token model portfolios closed positions in XMR (+521% since Aug 22), two tranches of IOTA (+348% since Sep 3 and +267% since Nov 28), XLM (+572% since Aug 31), and two tranches of STRAT (+112% since Oct 31 and 95% since Oct 3).

In all, we closed out eight longer-term holdings -- all winners!

As member AngelG posted this week: "Folks I wanted to share with you the great guidance we're receiving in the crypto currency room. With a portfolio of 10 coins I am up 60% the last 5 days and 220% since inception. Thanks Ryan and crypto team!"

Please join our Crypto Currency service at ElliottWaveTrader! You can learn more here.
 
 
Ryan Wilday is a crypto currency analyst at ElliottWaveTrader.net and host of Crypto Currency Trading, a premium service in the EWT live trading room.
Avi Gilburt is founder of ElliottWaveTrader.net.