Price Predictions for Bitcoin, Ether, 2 Altcoins from Technical Trader

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Michael Boutros has been a professional FX trader and technical strategist for 15 years at DailyFX. He explains why bitcoin could quickly hit $ 45,000 before falling back to $ 32,000 to $ 35,000. It also features parallel trading for Ethereum and two altcoins as it predicts similar price movements.

Make no mistake, Michael Boutros is an end-to-end trader.

Having worked for almost all of the major Wall Street currency brokers for the past 15 years, he has tested and refined his own technical trading strategies to the end.

“The part I love most about trading is that it’s not static, every day is a new setup, every day is a new opportunity,” Boutros said in an interview. “It keeps you standing, and the market still delivers.”

Since the rapid and furious market crash of March 2020, volatility has gradually declined in traditional markets, but the Boutros trader still knows that “there are opportunities everywhere, you just have to know where to look”.

“It might not be an investor market, but it’s still a traders market,” he said, “and that’s how I approach every day.”

With the flexibility and agility to capitalize on short-term price movements, it’s no surprise that traders like Boutros are drawn to the highly volatile crypto market.

Better yet, as the bitcoin-dominated asset class matures, traders with technical analysis expertise are uniquely suited to gain an edge.

“Technical analysis is just the study of crowd psychology, so the more participants you have in an asset, the clearer the techniques,” Boutros said. “With bitcoin, it’s more of a sentiment game, which is why from a technical point of view, as more investors come into the fold and more volume in this asset begins to unfold, the techniques are becoming clearer and clearer. “

Bitcoin will rise, fall and reach new highs

After falling below a key support level of $ 30,000 on July 19, bitcoin (BTC) rose sharply from multi-month lows. It was trading above $ 42,000 on Friday at noon.

Boutros thinks traders shouldn’t be too excited just yet. He sees a similar price path for bitcoin to the one he took in the summer of 2018.

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“If you draw a parallel with the price action we’ve seen since the 2018 decline, there are actually a lot of similarities both in price and over time,” he said. “In that specific decline, you saw it about the fourth or fifth month in a small, neat recovery that gave way to another multi-month decline.”

In his opinion, bitcoin is in this period of transition from a short-term recovery to a further prolonged decline. He adds that the largest cryptocurrency could rally at $ 45,000 before encountering major downside resistance, which could lead to another multi-month drop.

“I don’t think we’ll necessarily see new lows, but on the downside, if we hit $ 32,000 to $ 35,000, maybe those would be decent entries for the long side,” he said. “On that lead, with the reversal we just did, even though it extends to $ 45,000 from here, you should still be wary. It’s still a broad downtrend over several months. “

In January of next year, Boutros sees bitcoin surpass the $ 45,000 level and hit new highs.

“So if you’re not a short-term guy you want to sit down,” he said. “You either want to wait for the pullback to $ 35,000 to buy, or if it goes above $ 45,000 it will be the recovery trade, you will probably see an accelerated rally.”

For traders looking to exploit short-term price movements, the next two weeks are prime time.

“You’re looking for a fading top, so you want to look for a stretch close to $ 43,000 short,” he said. “If it gets even higher, maybe add $ 45,000. But that’s your threshold and it really shouldn’t be higher than that if we’re going to correct lower.”

Trading strategies for Ethereum, Litecoin and Ripple

While much of the crypto market moves in tandem with bitcoin, some tokens have performed better while others have plunged harder than the dominant crypto, which was up over 47% since the start of the year. the year Friday at noon.

Ethereum’s native token, which activated a much-anticipated London upgrade on Thursday, has risen 280% this year. For Boutros, $ 3,300 is the line in the sand for Ether (ETH) to mark the resumption of another uptrend.

“You’ll probably see the ether continue to rise over the next few days, but in $ 3,300 or $ 3,350 you want to start putting things away early,” he said. “You are having a lot of resistance to the uptrend there, so close some long positioning and increase your protective stops.”

On the other hand, Litecoin (LTC), which has risen by around 15% this year, is touching a longer-term bottom before resuming a strong potential uptrend, according to Boutros. The altcoin was trading just above $ 148 on Friday at noon.

“Litecoin has seen a pretty steep decline. It has hit bottom pretty well over the past two months,” he said. “I’m looking for a pivot and a close above $ 150 to possibly be the recovery move there.”

Boutros believes the Ripple (XRP) is in a similar troughing process, but if it breaks above $ 0.80 it will likely find significant support. Altcoin, which was up around 248% this year, was trading at $ 0.74 at noon on Friday.

In the short term, it’s the same trade for bitcoin, ether, litecoin and ripple in that even if they increase in the short term, traders should wait for the pullback, according to Boutros.

“It’s too clean for this 10-day rally to take a two-day break and then continue,” he said. “There has to be a washout. We have to take out some of the weak hands first, and then all of a sudden, that low is where you want to start preparing for a bigger rally.”

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