anzach77
Long

LTCBTC in priming for a breakout?

BINANCE:LTCBTC   Litecoin / Bitcoin
We observe LTCBTC's first markup in a 3 part impulse wave, followed by a pretty dramatic 2 part correction wave, and markdown back to the 200MA (in red). It is a pretty solid double bottom on the 200MA to indicate a strong support level/indicator.

This is followed by a rebound and flag consolidation at the converging 50MA (in green) and 100MA (in orange). Price action has also been very obedient to the Fibonacci Levels - trade set ups can be referenced from these levels for entries and exits according to your risk tolerances.

The bullish scenario would be for a breakout from the flag breaking above the 50MA and 100MA simultaneously, in attempts to retest the 78% Fib level. This looks quite possible from the likely MACD cross - although you may want to be wary of a fakeout, as the shorter line (blue) seems to be tipping over, and the longer line (orange) has not seen a clean break.

The ADX momentum is also weak, with very minimal DI divergence (regardless, both of these indicators are 'lagging indicators', and should not be your sole source of analysis).

The bearish scenario, would be for a rejection of the 50MA and price action back down to the 200MA. It is however, unlikely for the price to fall below the 200MA as it would spell disaster.

For those who pay attention to fundamentals and news, the Litecoin halving is just a couple months away, and sentiment is generally bullish .
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