The Tether news dropped us 20% on LTC but we made a strong and swift recovery that briefly hit the level we fell from. The bounce broke the downward sloping resistance, gained the 50MA as support and put us back in our previous, mid-term, bullish channel. I was following an RSI downtrend during the dump looking for an oversold bounce entry but we didn’t get oversold on the daily. Price does seem to be respecting the bottom of our bullish channel loosely but I don’t expect it to continue. I believe we are entering a tightening range that will last through the week. Our current base of support is 65.41 and our breakout price is 81.54. RSI is neutral at 50. We did break our RSI downtrend from last week so this is a good indicator that the tether fud has passed for now. MacD looking to make a bullish cross. We have the 50 MA helping the bulls out as support. We currently have roughly 10% to the upside and 10% to the downside in our equilibrium range (pink lines). Looking for a higher low around 73 to better confirm we are entering a tightening range.
Make no mistake; We are neutral at what could potentially be just over the top of a midterm bullish trend after a 15-month brutal bear market. Bulls have room to the downside to maintain their mid-term dominance and it is taking very little volume to move this market. All it would take is some bulls to move out of the way and we could drop fast. Keep an eye out for BTC to lose its strength because it could signal the bulls are getting out of the way.
Make no mistake; We are neutral at what could potentially be just over the top of a midterm bullish trend after a 15-month brutal bear market. Bulls have room to the downside to maintain their mid-term dominance and it is taking very little volume to move this market. All it would take is some bulls to move out of the way and we could drop fast. Keep an eye out for BTC to lose its strength because it could signal the bulls are getting out of the way.
