Litecoin Warned Us and it Delivered
A few days ago I posted on how Litecoin was retesting support at 40 and may hint of a Bitcoin rally. I explained that it is informative to use other altcoin charts to gauge the future direction of Bitcoin . We reviewed Litecoin and it delivered. Bitcoin ripped from early week lows and has now filled the infamous 1200 point gap. Just ridiculous. However, the Litecoin price is lagging Bitcoin significantly (red flag). Below is the of Litecoin.
As you can see, Litecoin is rallying off the lows but the lack of follow through should be concerning. In the coming week or two there is also the risk of a reversal top forming. Could this reversal pattern provide us with another hint for Bitcoin?
Below is the of the Grayscale Bitcoin Trust ( GBTC ). Notice the lack of follow through for the bulls on the daily candle close. I view this as a sign of exhaustion which could lead to consolidation or a reversal. GBTC will be an important chart to watch in the coming weeks.
For crypto in general, there are signs that are pointing to continued consolidation, with potential of further dips to as low as 6,000. In the meantime continue to BTFD and sell into rallies. Bias: Bearish.
Follow through ASAP
Maybe I am impatient, but gold needs to follow through asap! Below is the daily view of GLD .
What we see here is potentially the next steps to a all-time high test. Momentum is beginning to build as GLD is breaking out from a month long symmetrical triangle. Don't short here, the trend has been and the with the current state of the global economy there may not be a safer place to stack your cash.
With that said, there are levels of support I would like GLD to hold. See below the 4-hour chart of GLD .
A break below 161 support and there is cause for concern. In the interim my bias remains.... Bias: Bullish.
Onto Black Gold
I haven't talked about any oil stocks on this channel yet so why not begin with USO. Below is the 4-hour chart of USO.
For the last 10 days USO has been in a sideways consolidation known as a rectangle. These types of formations often take form at the beginning of major trends. Last point on consolidations, is that they rarely have false breakouts outside of the . Whichever direction USO breaks will likely define the trend. Keep an eye on this chart as it could be a big winner heading into the summer. Short term, Bias: Bullish.
Tomorrow is the weekly close. In the morning I'll be reviewing Zoom and possibly Tesla . I hope you have a great evening!