Litecoin in Precarious Position! Ending Diagonal Setup in Place
Litecoin (LTCUSD) broke its 1-2,i-ii setup with the crash over the past 2 weeks, but it fares better than ETC, BCH, FIL and EOS which all completely reset their 5th wave rallies with lows that fell lower than their midsummer lows.
Breaking the 140.03 support has invalidated the primary PURPLE pattern, so the new GREEN pattern is primary.
This pattern sees the entire 3-wave rally as the 1st wave of a large ending diagonal 5th wave. Why 3-wave ABC's? Because diagonals consist of 3-wave corrective structures within each subwave.
However, if the 104 major support is broken, the RED alt pattern becomes primary, and this sees the correction that began in May 2021 as continuing with a nasty final C-wave to complete our larger Wave 4 correction as far down as the 76-level! Yikes!
Ending diagonals don't project quite as high as an impulse and are full of undulation and whipsaw. That said, subwave (iii) projects to 514-601, and subwave (v) projects to 601-773. The blue boxes remain as higher projection targets as the Fibonacci major resistances overhead remain just as before. There is the potential for extensions into those boxes. Not only are ending diagonals choppy, but they often precede major crashes!
This pullback afterwards will likely coincide with a broader crypto market crash, which I expect to be especially nasty for BTC and ETH. But the gravity of those two major cryptos can easily pull altcoins down with LTC possibly dipping into the low-100s range over a period of several months or even years! For that reason, that top will likely be a great time to take profits and reallocate into other asset classes and Stablecoins or even simply enjoy your winnings and relax!
I use Elliott Wave analysis to project price levels for different assets and asset classes. EW is a form a technical analysis that is absolutely NOT based on fundamentals. Please be aware that this is not intended to act as financial advice. I am not a trained or certified financial professional. You may invest based on a strategy tailored to your own skill and risk-tolerance levels.
#litecoin #bitcoin #ethereum #cryptocurrency #blockchain
Breaking the 140.03 support has invalidated the primary PURPLE pattern, so the new GREEN pattern is primary.
This pattern sees the entire 3-wave rally as the 1st wave of a large ending diagonal 5th wave. Why 3-wave ABC's? Because diagonals consist of 3-wave corrective structures within each subwave.
However, if the 104 major support is broken, the RED alt pattern becomes primary, and this sees the correction that began in May 2021 as continuing with a nasty final C-wave to complete our larger Wave 4 correction as far down as the 76-level! Yikes!
Ending diagonals don't project quite as high as an impulse and are full of undulation and whipsaw. That said, subwave (iii) projects to 514-601, and subwave (v) projects to 601-773. The blue boxes remain as higher projection targets as the Fibonacci major resistances overhead remain just as before. There is the potential for extensions into those boxes. Not only are ending diagonals choppy, but they often precede major crashes!
This pullback afterwards will likely coincide with a broader crypto market crash, which I expect to be especially nasty for BTC and ETH. But the gravity of those two major cryptos can easily pull altcoins down with LTC possibly dipping into the low-100s range over a period of several months or even years! For that reason, that top will likely be a great time to take profits and reallocate into other asset classes and Stablecoins or even simply enjoy your winnings and relax!
I use Elliott Wave analysis to project price levels for different assets and asset classes. EW is a form a technical analysis that is absolutely NOT based on fundamentals. Please be aware that this is not intended to act as financial advice. I am not a trained or certified financial professional. You may invest based on a strategy tailored to your own skill and risk-tolerance levels.
#litecoin #bitcoin #ethereum #cryptocurrency #blockchain
