Hey friends hope you are well and welcome to the new update on Litecoin. In my previous article we have seen that the LTC formed a bullish reversal BAT pattern and entered in the potential reversal zone. Now the priceline is moved up from the potential reversal zone and it has produced more than 12% rally so far.
The priceline is bounced from the support of the channel:
Since 16 July the priceline of LTC was moving sideways at the support of an up channel. After starting the bullish move from the potential reversal zone of BAT pattern the priceline has also bounced from the support of this up channel and likely to move up to the resistance of this channel that is almost at $50.
If we switch to the weekly chart then it can be seen that the price action is moving in a very big descending triangle and it is being rejected by the resistance of this pattern since Feb 2018. After being rejected in the month of Feb 2020 the price action has again bounced from the support of this triangle and moving sideways. If we take a closer look on the chart after placing the volume profile indicator then the price action is moving around a point of control of volume profile. Now if it will be continuously moving around this point of control level then priceline of Litecoin can leave the triangle without breaking out or breaking down. However, after leaving the triangle priceline of LTC can use the resistance of the triangle as support as it will be above the resistance level of this triangle. And after successful re-test it can start a big upward move.
Conclusion:
On the daily chart the price action has moved up from the potential reversal zone of a harmonic pattern and also took bounce from the support of an up channel. Therefore there are more chances that the priceline of Litecoin will breakout the resistance rather to break down the support. However, we can use the support of the up channel on daily chart as stop loss because if it will be broken down then the price action can move more down to re-test the support of the triangle that has been formed on the weekly chart and that support is at $33.5.
The priceline is bounced from the support of the channel:
Since 16 July the priceline of LTC was moving sideways at the support of an up channel. After starting the bullish move from the potential reversal zone of BAT pattern the priceline has also bounced from the support of this up channel and likely to move up to the resistance of this channel that is almost at $50.
If we switch to the weekly chart then it can be seen that the price action is moving in a very big descending triangle and it is being rejected by the resistance of this pattern since Feb 2018. After being rejected in the month of Feb 2020 the price action has again bounced from the support of this triangle and moving sideways. If we take a closer look on the chart after placing the volume profile indicator then the price action is moving around a point of control of volume profile. Now if it will be continuously moving around this point of control level then priceline of Litecoin can leave the triangle without breaking out or breaking down. However, after leaving the triangle priceline of LTC can use the resistance of the triangle as support as it will be above the resistance level of this triangle. And after successful re-test it can start a big upward move.
Conclusion:
On the daily chart the price action has moved up from the potential reversal zone of a harmonic pattern and also took bounce from the support of an up channel. Therefore there are more chances that the priceline of Litecoin will breakout the resistance rather to break down the support. However, we can use the support of the up channel on daily chart as stop loss because if it will be broken down then the price action can move more down to re-test the support of the triangle that has been formed on the weekly chart and that support is at $33.5.
