We are very close to a decision point here with LTC. We have tested the orange resistance line around $193 three times since we found support at $162. From this we have created an ascending triangle
pattern which we could either to decide to trade the breakout or build a position from here. As we are currently at the top of the triangle, I am willing to wait for either a pull back to the red Fibonacci levels to enter a position or, if this doesn't happen, then wait until we break upwards of this pattern and enter a trade there. When I enter a position within a continuation pattern like this, I always set a tight stop as these are risky entries. I would see a pull back after the breakout of this pattern as a better entry with high probability of profit. Breaking upwards from this pattern I would also expect to break out of the downwards channel that we’ve been in since 20/02 and this should give us bullish
confirmation with the 20- and 50- day EMA
crossing above the 100- day EMA
. The next resistance in sight would be the $224 level which would be a key area. We could take profits here and wait to see how the market responds to the resistance before entering a new position.
If we failed to break upwards from this pattern then we would be headed for the previous support level
again. Failing here would mean we would be heading back to the start of wave (1). We have had warning from the bears that they are expecting a crash pattern so this would be the area of most importance that would confirm their bull trap scenario. I am bullish
on crypto so personally I don’t think we would get that far but it is always good to see the perspective on both sides of the market. In the end, it doesn’t matter who’s right or wrong as long as we listen to the market and prepare ourselves for each outcome.
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