Today an update on LTC price action, a lot to talk about.
Let’s get straight in to this!
-So first of all I’d like to start with the support lines. We’ve created a very strong support line in the last couple of days at +/- 74. If we check the past, we’ve done that a couple of times before, The last times in March and April. We can see a similar pattern in this upwards trends. So first a couple of days were price-action stays the same, then a fake breakout, followed by another couple of days at the same price action, which has been continued with a uptrend rally. We’ve seen that two times in a row. The period we're in at this moment is pretty similar with the period of march and April. It’s true that it’s not that big of a break out, but you can’t expect such breakouts anymore, of crypto’s has gone down (which is a good thing) so the patterns will not be that clear anymore like in the past.
-The second thing that caught my eye was the possible reversed head and shoulder pattern who could possibly be created in the next couple of days. We can see a clear shoulder been created and a nice head at the end of June/ Begin of July. If the bulls can stay strong at the support line (74) than we could maybe see the real breakout to the first test at 86. If volume is big enough, we could past the 86 level and could reach are next target at 100. I know this will not be an easy task, the resistance line at 86 has been denied the last 6 times in the end of June, begin July.
-Another thing we’ve to take in mind: LTC has had a 81% correction in the last months, we’re at the lower end of things!
-The is telling us that there is still downwards momentum on going and we've not reached the bottom yet.
What I’m going to do:
I think that we’re in a no trade-zone at the moment. If we are not strong enough to hold on the 74 level, we could possibly see a free fall back to 50. I will wait to trade until we’ve past the 86 level or if we succeed to stay strong at the 74 level for another week.
3 scenarios (short resume):
- So we could see an uptrend to 86, then everything will depend on the , if we pass that level, we could see a possible uptrend to 100. Maybe followed by a pattern.
- If we pass the 74 level, we could see a possible free fall to 50.
- Most likely we are going to bounce around between the 74 and 86 level for still quite some time.