As my followers know, I've been following alts pretty closely. Many alts have been following the same pattern to the bitcoin pair, with one downward sloping trendline connecting the wicks of the lows from the last week or so. This tells me that a lot of alts are finding support, and possibly even preparing for the fabled ALT SEASON.
However, Litecoin is quite interesting to me, because the formation is a little different and just has one big wick down to touch the line, rather than a longer consolidation (see ETH chart, or my LINK analysis). Zooming out, it seems like the beginning of a big 12345 structure, and since we bounced quite heavily off this trendline, I would risk a little of my capital to long the forth wave. I chose a conservative fib level as a target, but could bounce a little higher to the 0.618.
We also have a nice MACD cross on the 1 hour, so that's a pretty strong signal to buy.
(click and drag on price bar to scroll on chart)
Please don't forget to leave a like!
However, Litecoin is quite interesting to me, because the formation is a little different and just has one big wick down to touch the line, rather than a longer consolidation (see ETH chart, or my LINK analysis). Zooming out, it seems like the beginning of a big 12345 structure, and since we bounced quite heavily off this trendline, I would risk a little of my capital to long the forth wave. I chose a conservative fib level as a target, but could bounce a little higher to the 0.618.
We also have a nice MACD cross on the 1 hour, so that's a pretty strong signal to buy.
(click and drag on price bar to scroll on chart)
Please don't forget to leave a like!
Trade closed: stop reached
Comment:
Yesterday I realised that there is little reason in doing analysis of several different altcoins in this market because it seems like the only thing you can analyse is just altcoins and bitcoin because they all apparently move exactly the same way.
Comment:
Interesting that it eventually hit the wave 4 target almost exactly, just felt like doing a bear trap/ stop hunt before hand. Wave 5 target also hit.
I don't mind that I missed out on some profits on this trade because the risk level after breaking below the support was just not enough for the potential reward. If you click the arrow on the chart, you'll see some crazy volume spikes, and honestly I don't know how to explain that if not for whales having a good time in low liquidity.
I don't mind that I missed out on some profits on this trade because the risk level after breaking below the support was just not enough for the potential reward. If you click the arrow on the chart, you'll see some crazy volume spikes, and honestly I don't know how to explain that if not for whales having a good time in low liquidity.
