Bitcoin has spent 2015 in a sideways consolidation. A look at the Litecoin price chart sheds some light and shows up a lot of noise that had been distracting exchange chart investors for the past 10 months. This analysis is provided by xbt.social with a…
Bitcoin has spent 2015 in a sideways consolidation. A look at the Litecoin price chart sheds some light and shows up a lot of noise that had been distracting exchange chart investors for the past 10 months.
Time of analysis: 15h36 UTC
From the analysis pages of xbt.social, earlier today:
xbt.social member S, suggested I take a look at the Litecoin chart. The chart view irons out some of the noise evident in the heavily manipulated bitcoin chart.
The wave structure for 2015 is clear and conforms to Elliott wave principle in a manner that is a relief since the bitcoin chart is often so distorted that it would be reasonale to assume Elliott wave does not apply to it. In the context of the LTC chart, a useful perspective is gained.
Litecoin formed an ABC structure to the July top. It counts out perfectly and exhibits the “extended fifth wave” that characterizes commodity charts. In stock charts the longest wave is typically wave 3 since that is where the herd piles in. Because fear tends to drive commodities, the urge to join trend increases with each new wave to the upside, and the herd piles in during wave 5 causing it to surge. Even the fifth subwave of wave 5 becomes extended as the market “blows out” to the upside.
Two wave counts are labeled. The black count is prefered and the red count is “alt”. By implication, the current bitcoin wave B is ridiculously exaggerated to the upside and is bound to correct to support.
That cotton trade was almost the deal breaker for me. It was at that point that I said, ‘Mr. Stupid, why risk everything on one trade? Why not make your life a pursuit of happiness rather than pain?’ – Paul Tudor Jones
Whichever way the Litecoin chart heads in, the prospects in the bitcoin chart have improved and our concept of what scenarios are probable has come a long way from the beginning of 2015 when we did not know if it was up, down, sideways or what.
A big exchange boss recently declared most of the exchanges’ volume as bogus. Perhaps he’d like to file such a statement to his banking bosses before TPP obliges him to?
Let’s keep an eye on Litecoin – its correlation to the Bitcoin chart may decouple in the future, but for now it is a useful guide.
Bitfinex orderbook depth and Buy/Sell Volume:
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Last modified: January 25, 2020 11:11 PM UTC