EDUCATION: What is a Falling Wedge? We can observe a bullish pattern here, a Falling Wedge, that begins wide at the top and contracts as prices move lower. The price action forms a cone that slopes down as the reaction highs and reactions lows converge. Each high is lower than the previous high, and each low is lower than the previous low.
We need the price to break the upper resistance line to get a buy signal, which could be seen soon as the RSI broke the resistance, but we have to wait for a breakout and can’t make any speculation - very important. If it occurs, just watch the next resistance which is the previous uptrend line (red dotted line on the chart) that formed in november / early december. Once it breaks that, it’s going bananas.
If it doesn’t occur, we’ll stay inside of this Falling Wedge (bullish pattern in case you’ve already forgotten) and eventually bounce off the main uptrend, which nicely coincide with the end of the pattern.
We can see also see others bullish signs in this chart:
1. The price formed a double bottom
2. It did it on a very important support line: the 0.786 Fibonacci line
3. And finally if you zoom in, and take a look at the 4h chart… You can see it performed a nice bullish divergence.
EDUCATION: What is a bullish divergence ? As shown below, it occurs when prices reach a new low, but an oscillator (The RSI in this case) reaches a higher bottom than it reached during its previous decline. This kind of divergence is often the best signal of an impending sharp rally.
I’ll close this idea saying that I’m bullish on Litecoin not only based on the technical analysis I just showed you, but mainly based on the fundamental analysis: it’s a very good payment option, fast, with low fees, and way more convenient that Bitcoin (not difficult I agree). In more, there’s a lot of positive news with Litecoin, with the release of Litepay, futur atomic swap with Bitcoin in 2018, network continually growing, more and more commerçants accepting it, etc etc etc.
I believe it is still very undervalued, and will not be surprised to see a huge rally this year, with more adoption from the mass.
And finally, why couldn’t I contradict myself and end with some speculation to spice up even more things… Could Starbucks starts accepting Litecoin? theusacommerce.com/w...coin-ltc-as-payment/
We need the price to break the upper resistance line to get a buy signal, which could be seen soon as the RSI broke the resistance, but we have to wait for a breakout and can’t make any speculation - very important. If it occurs, just watch the next resistance which is the previous uptrend line (red dotted line on the chart) that formed in november / early december. Once it breaks that, it’s going bananas.
If it doesn’t occur, we’ll stay inside of this Falling Wedge (bullish pattern in case you’ve already forgotten) and eventually bounce off the main uptrend, which nicely coincide with the end of the pattern.
We can see also see others bullish signs in this chart:
1. The price formed a double bottom
2. It did it on a very important support line: the 0.786 Fibonacci line
3. And finally if you zoom in, and take a look at the 4h chart… You can see it performed a nice bullish divergence.
EDUCATION: What is a bullish divergence ? As shown below, it occurs when prices reach a new low, but an oscillator (The RSI in this case) reaches a higher bottom than it reached during its previous decline. This kind of divergence is often the best signal of an impending sharp rally.
I’ll close this idea saying that I’m bullish on Litecoin not only based on the technical analysis I just showed you, but mainly based on the fundamental analysis: it’s a very good payment option, fast, with low fees, and way more convenient that Bitcoin (not difficult I agree). In more, there’s a lot of positive news with Litecoin, with the release of Litepay, futur atomic swap with Bitcoin in 2018, network continually growing, more and more commerçants accepting it, etc etc etc.
I believe it is still very undervalued, and will not be surprised to see a huge rally this year, with more adoption from the mass.
And finally, why couldn’t I contradict myself and end with some speculation to spice up even more things… Could Starbucks starts accepting Litecoin? theusacommerce.com/w...coin-ltc-as-payment/
Comment:
Trade active:
Broke out of the Falling Wedge, but with low volume, and 0.618 fib retracement line acting as a strong resistance. Still waiting to buy, signal not strong enough for me.
Comment:
Former trend line broken, breakout confirmed ! I’m buying more for long term as soon as it’s less overbought
