Yesterday we looked at ethereum and saw there is reason to start watching the coin for signs of life. In the days previous we saw the same thing about bitcoin. This inspired me to bring up a chart of litecoin to see if the chart of this rather stagnant coin has anything to say. To my pleasant surprise, it does indeed. Let’s first have a look at a long term bull setup:
This bull setup spans an almost 55 day period from May to July 2015. The check to see if the market is respecting the setup seems to indicate that it is. For example, note the reversal at almost the end of the 1st square (pink arrow), the drop at the 1st arc pair (brown arrow), the rise at the 2nd arc pair (blue arrow) and the successful resistance of the Gann 4×1 angle (green arrow). Having satisfied ourselves that the setup is at least somewhat respected, we should then note that pricetime is now just a few days away from the 3rd arc pair. It is highly likely that SOMETHING will happen there. But what?
Let’s look at a shorter term bull setup from the 4/2016 rise:
Here again we see the fractal nature of the market as it respects this setup as well as the longer term setup above. Note the resistance of the first arc (gray arrow), sharp rise at the 1st arc pair (pink arrow). Now note that pricetime just passed the end of the 2nd square. This is often a time of reversals and accelerations. We have also entered the 2nd arc pair, and yesterday the coin had it’s biggest one day rise in over a month. Not likely a coincidence.
It seems that litecoin, like bitcoin and ethereum, is indicating it may be entering a time of change/excitement.
All three coins are presently worthy of paying attention to. They each indicate bullish potential in the near future. Does the altcoin universe know something that we do not?
Remember: The author is a trader who is subject to all manner of error in judgement. Do your own research, and be prepared to take full responsibility for your own trades.
Featured image from iStock.