CONTEXT
Litecoin has been on a massive sell off in very similar magnitude and length (2-3 months roughly) than the rally that took price from $65 to $145 for a +100% increase. Similarly, since late June, price has lost half it’s value in about two months, showing a lot of weakness and little buying interest. However, price has just touched a significant S/R zone in which we last saw a massive buying interest at a cheap price. The order flow shows that there has already been a reaction from buyers in this zone and I believe this could be THE opportunity to see Litecoin rise again sharply.
ANALYSIS
Although the overall bias is bearish and trend has been respecting previous levels of S/R, the reaction in this key support zone and the increase in volatility alone should make this a great low risk, high profit potential trade, so I will be looking for pullbacks into the zone or recent support levels at the lower timeframes.
Let me know what you think in the comments below and thank you for reading!
Litecoin has been on a massive sell off in very similar magnitude and length (2-3 months roughly) than the rally that took price from $65 to $145 for a +100% increase. Similarly, since late June, price has lost half it’s value in about two months, showing a lot of weakness and little buying interest. However, price has just touched a significant S/R zone in which we last saw a massive buying interest at a cheap price. The order flow shows that there has already been a reaction from buyers in this zone and I believe this could be THE opportunity to see Litecoin rise again sharply.
ANALYSIS
Although the overall bias is bearish and trend has been respecting previous levels of S/R, the reaction in this key support zone and the increase in volatility alone should make this a great low risk, high profit potential trade, so I will be looking for pullbacks into the zone or recent support levels at the lower timeframes.
Let me know what you think in the comments below and thank you for reading!