Litecoin and Bitcoin are in a very similar situation, they have wicked to their 0.618 Fib retracement level and are showing bullish divergence on the 1H chart. Bitcoin is still respecting it's upward channel and looks ready to go back up again. A simple strategy to use with divergence is to play the trend line breaks of BOTH the price action trend and the RSI with confirmation from MACD. All of these requirements have been printed so my target would be a test of the middle trendline of the upward channel at around $13100 for the short term. We should reassess the situation when/if we get there.
Here's why I think this move is a strong possibility:
-Price action trendline broken
-Bullish Divergence on RSI
-Trendline break of RSI
-MACD confirmation
-This bounce happened at support and the 0.618 Fib level
Set stop loss slightly below the lowest wick of the last swing low.
Please feel free to comment and discuss!
Here's why I think this move is a strong possibility:
-Price action trendline broken
-Bullish Divergence on RSI
-Trendline break of RSI
-MACD confirmation
-This bounce happened at support and the 0.618 Fib level
Set stop loss slightly below the lowest wick of the last swing low.
Please feel free to comment and discuss!