Market sentiment quickly changing, Litecoin will LEAD the pack
Currently LTC could be forming the right shoulder of a very bullish inverse head and shoulders reversal pattern.
No one can predict how low the right shoulder will go but it would be an extremely bullish formation if it was a higher low than the left shoulder.
A breakout from the neckline of this pattern would correlate with a breakout of the current downtrend channel that we have been trading since the last all time high. (Purple dashed line is the downtrend channel.)
This formation and breakout from the very LARGE downtrend channel can really change the sentiment of the market turning bullish.
If/when this breakout occurs, the move up is projected to be as big as the size of the head of the current INV H&S formation. This measured move up also correlates with a resistance point in the past that I have circled in red. The next wave down will consolidate and bounce off the top of another current resistance zone (turned support after the INV head &shoulder breakout) and consolidate forming a bull flag .
Another very bullish sign is the buy and sell volume on the bottom of the screen that has more than doubled in size since the beginning of the year. A breakout of the H&S reversal pattern should also be coupled with large volume at the neckline.
This whole move will take place over the next few weeks.
Comments both negative and positive are welcome. Constructive criticism is what helps me learn and also grow into a stronger trader.
LITELONG
No one can predict how low the right shoulder will go but it would be an extremely bullish formation if it was a higher low than the left shoulder.
A breakout from the neckline of this pattern would correlate with a breakout of the current downtrend channel that we have been trading since the last all time high. (Purple dashed line is the downtrend channel.)
This formation and breakout from the very LARGE downtrend channel can really change the sentiment of the market turning bullish.
If/when this breakout occurs, the move up is projected to be as big as the size of the head of the current INV H&S formation. This measured move up also correlates with a resistance point in the past that I have circled in red. The next wave down will consolidate and bounce off the top of another current resistance zone (turned support after the INV head &shoulder breakout) and consolidate forming a bull flag .
Another very bullish sign is the buy and sell volume on the bottom of the screen that has more than doubled in size since the beginning of the year. A breakout of the H&S reversal pattern should also be coupled with large volume at the neckline.
This whole move will take place over the next few weeks.
Comments both negative and positive are welcome. Constructive criticism is what helps me learn and also grow into a stronger trader.
LITELONG
Comment:
The death cross is approaching which could cause a FUD sell off however, I do believe that the crypto market and the stock market should not be compared on the same time scale for a big reason: one is traded on a 5day 8-5 timeframe while the other is a 24/7 free exchange. The cross could stilk scare some people away and bring us a little lower but my hopes are that an exchange of hands plays out and the weak are shaken off.
Of course nothing is certain in this market and we need to assess as we go. First a leg up to the channel line and then confirmation of a close above. This should be an interesting week.