I am a believer that right now, especially with these levels of market capitalization, that whales have significant control of the near term movement of coins. The reason I am charting LTC rather than BTC is simple: time and time again we have seen Litecoin “leading the way” for Bitcoin by moving first. This is only true until it’s not, but there is something about LTC that likes to give us a hint as to what is up soon for BTC and others.
We are right in the middle of a historic zone where we can see whales show their hands. This range of roughly $34 - $40 has given us insight as to what is coming in the midterm, and I believe it will be the same this time around.
We see that, historically, the intersection of a channel or wedge with this zone signals what is to come for the months ahead. This is how with the ellipses and channels of significance over the past few years.
We are now in this zone yet again. We are deep into a descending wedge with decreasing volume and we have entered smack dab into the middle of the $34 - $40 range. So what I am looking for to make my next move?
That depends on what the whales do. I think we have 12-15 days to see whether or not another major selloff is coming, which would likely breach the lower bound of the zone and the lower bound of the defending wedge at the same time. IF this were to happen, we will likely see capitulation and $25 -$28 LTC, along with $5,500 BTC. However, if we manage to hold this range for the next 15 - 30 days, I expect an approach and potential break out of the upper bound of the channel and zone which would signify a strong bullish movement. Typically, bottoms take longer to form than tops do. I am committable sitting on the sidelines for the next couple of weeks before there is a large disparity between risk and reward in a trade. I believe it is highly unlikely that we will see any kind of explosion upward before 2020.
For these reasons, I am not short or long right now. Should we break lower in the next couple weeks and breach the lower bounds, I will be looking for a bottom pattern on the daily combined with a beautifully oversold RSI before entering a long position. Should we hold this zone and trade sideways for the next few weeks, I will be watching closely for that upper bound on both the historic zone and descending wedge to be breached. This would be the time that I enter a long position with the risk/reward ratio greatly in my favor.
Good luck everybody!
- Baylor
We are right in the middle of a historic zone where we can see whales show their hands. This range of roughly $34 - $40 has given us insight as to what is coming in the midterm, and I believe it will be the same this time around.
We see that, historically, the intersection of a channel or wedge with this zone signals what is to come for the months ahead. This is how with the ellipses and channels of significance over the past few years.
We are now in this zone yet again. We are deep into a descending wedge with decreasing volume and we have entered smack dab into the middle of the $34 - $40 range. So what I am looking for to make my next move?
That depends on what the whales do. I think we have 12-15 days to see whether or not another major selloff is coming, which would likely breach the lower bound of the zone and the lower bound of the defending wedge at the same time. IF this were to happen, we will likely see capitulation and $25 -$28 LTC, along with $5,500 BTC. However, if we manage to hold this range for the next 15 - 30 days, I expect an approach and potential break out of the upper bound of the channel and zone which would signify a strong bullish movement. Typically, bottoms take longer to form than tops do. I am committable sitting on the sidelines for the next couple of weeks before there is a large disparity between risk and reward in a trade. I believe it is highly unlikely that we will see any kind of explosion upward before 2020.
For these reasons, I am not short or long right now. Should we break lower in the next couple weeks and breach the lower bounds, I will be looking for a bottom pattern on the daily combined with a beautifully oversold RSI before entering a long position. Should we hold this zone and trade sideways for the next few weeks, I will be watching closely for that upper bound on both the historic zone and descending wedge to be breached. This would be the time that I enter a long position with the risk/reward ratio greatly in my favor.
Good luck everybody!
- Baylor