Where are we at?
According to this analysis of $LTC on the Daily we could be at the beginning of wave (C) of a lower time frame ABC corrective pattern (low time frame analysis will follow).
Overall this could mark the beginning of the end of a complex WXY correction which has been channeling $LTC since July 2019 (this correlates nicely with $BTC that seems to be in a similar structure, see my $BTC analysis on the issue).
In support of this idea stands the bullish divergence between MFI marking higher lows and price action forming a significant lower low; this implies decreasing selling pressure indicating weakness in the downward movement.
What happens now?
After a last move up (C) to about 46$ (1:1 fib extension of (A)) we could see $LTC forming a last leg down to around $33 finalizing the WXY pattern.
In support of the theory that there is still one leg to come stands the fact that significant targets to the downside have not yet been met: the 1:1 ratio of wave W lies at around 33$ which correlates with the 0.7 fib level of the last impulse wave up (December 2018 - June 2019) and with the 1.272 fib extension of (a).
It is thus likely that we will see one last low after this ABC correction leading wave 5 of C to the vicinity of 33$. That low might then, if the significant support levels hold true, lay the foundation for higher lows forming a new bullish channel.
This would be confirmed by a break of the current bear channel. That break would be significant because it opens up the pathway to a new highs with our first probable target of the golden ratio of wave (c) of the higher degree.
Any trading opportunities?
Current price action offers a good opportunity for a long to ~45$ with the channel resistance opening up nice options for a short to possibly 33$ - we will have to see what price tells us until then and after that.
Invalidation would clearly be a break of current support levels (lower time frame) and a break of the 0.7 fib level at 33$.
Please share and comment.
According to this analysis of $LTC on the Daily we could be at the beginning of wave (C) of a lower time frame ABC corrective pattern (low time frame analysis will follow).
Overall this could mark the beginning of the end of a complex WXY correction which has been channeling $LTC since July 2019 (this correlates nicely with $BTC that seems to be in a similar structure, see my $BTC analysis on the issue).
In support of this idea stands the bullish divergence between MFI marking higher lows and price action forming a significant lower low; this implies decreasing selling pressure indicating weakness in the downward movement.
What happens now?
After a last move up (C) to about 46$ (1:1 fib extension of (A)) we could see $LTC forming a last leg down to around $33 finalizing the WXY pattern.
In support of the theory that there is still one leg to come stands the fact that significant targets to the downside have not yet been met: the 1:1 ratio of wave W lies at around 33$ which correlates with the 0.7 fib level of the last impulse wave up (December 2018 - June 2019) and with the 1.272 fib extension of (a).
It is thus likely that we will see one last low after this ABC correction leading wave 5 of C to the vicinity of 33$. That low might then, if the significant support levels hold true, lay the foundation for higher lows forming a new bullish channel.
This would be confirmed by a break of the current bear channel. That break would be significant because it opens up the pathway to a new highs with our first probable target of the golden ratio of wave (c) of the higher degree.
Any trading opportunities?
Current price action offers a good opportunity for a long to ~45$ with the channel resistance opening up nice options for a short to possibly 33$ - we will have to see what price tells us until then and after that.
Invalidation would clearly be a break of current support levels (lower time frame) and a break of the 0.7 fib level at 33$.
Please share and comment.