Litecoin has now confirmed the potential reversal zone for the bearish bat on the daily timeframe, I've been monitoring the progress of this setup for several weeks and watched the C to D leg materialise. This opportunity is purely based on technical measurements and the reasoning for a market correction is perfectly logical.
Let's quickly review the previous price legs which lead us to the current price.
The price leg from A to B measured an overall increase of 87.99% over 32 days.
This was soon corrected by an exact 30% decrease in the B to C movement lasting only 14 days.
Our focus is primarily on the C to D leg which seen a 116.82% increase "ending" at the confirmation of the 0.886 XA measurement, this move lasted a total of 55 days.
My expectation is that we will see a near term correction to the 0.382 retracement resulting in a 24.82% correction. Ultimately based on whether the reversal takes place the optimal target is the 0.618 retracement with a 40.16% decline.
Pay attention to the structure shown below on the daily chart, this provides a basic indication of how price is currently moving.
Once the reversal takes place I would monitor the support trendline in order to confirm a continuation to the 0.618 retracement.
That's it from me! Enjoy your weekend when it comes :)
Let's quickly review the previous price legs which lead us to the current price.
The price leg from A to B measured an overall increase of 87.99% over 32 days.
This was soon corrected by an exact 30% decrease in the B to C movement lasting only 14 days.
Our focus is primarily on the C to D leg which seen a 116.82% increase "ending" at the confirmation of the 0.886 XA measurement, this move lasted a total of 55 days.
My expectation is that we will see a near term correction to the 0.382 retracement resulting in a 24.82% correction. Ultimately based on whether the reversal takes place the optimal target is the 0.618 retracement with a 40.16% decline.
Pay attention to the structure shown below on the daily chart, this provides a basic indication of how price is currently moving.
Once the reversal takes place I would monitor the support trendline in order to confirm a continuation to the 0.618 retracement.
That's it from me! Enjoy your weekend when it comes :)
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