Past 2 days this market has been more difficult to predict because volumes have dropped completely. The bearish wedge i posted on Bitcoin few days ago played out, made the first push down, broke the 7400 support but has been indecisive since. Usually since it didn't drop straight away to the wedge target, it's a sign that it wan't to do a retest of the resistance zone of 7500/7800. In the mean time however, anything can happen. Because of the random moves with bitcoin it's tough to get a grip on the short term direction.
Now with LTC, it looks like a double bottom pattern is getting made. This suggest we drop some more coming day, but NOT a dump. So if a dump happens, then simply forget about it. If we drop slowly, like it has done the past days, it could give great potential, good RR. Where the low will be, is guessing, it could be between 42 and 44.5.
The red circle is the risky zone, the yellow zone is the safer zone to play the W bottom pattern. For the yellow zone, a strong, aggressive volume push up is needed though and then seeing a solid bull flag form. If that happens, a push towards the target zone around 53/57 should be very likely.
To give more guidelines, you can see i have drawn those 2 trend lines, which show the shape of a wedge. So it's not a wedge but it has the shape of it. Anyway, if we see another drop and bounce that breaks the red resistance line, would increase the odds that the blue line plays out.
Great work David. Glad you are back and hope all is well.
Do you think $50-51 will offer any resistance? It is the 0.38 retracement and also a structure lays there.
Do you think $50-51 will offer any resistance? It is the 0.38 retracement and also a structure lays there.