LTC seen from the temporality of 1D we can observe a bullish movement inside the minor figure that represents an ascending wedge indicated in the graph by means of 2 red diagonals, the price should still mark a new HH inside this figure before having a correction, the major figure could form a trend reversal pennant, we would have to wait for the third HH to know, however the possibilities are high, during the bullish movement the volume has been falling, this divergence is a bearish signal that indicates a possible change of momentum in the movement, if the price forms a new HH in the resistance located in the 75 we could see a break down of the wedge to look for the diagonal support of the major figure, in the chart above I have drawn the possible trajectory of the price in the next 1D candles.
LTC seen from the temporality of 4H we can observe more closely the current movement of candles, as I mentioned earlier, here we can see the fall of the volume as the movement continues to hold up, soon this could change and there is a corrective movement, in the chart I have indicated through 3 circles the HH levels of this impulse, the third HH should materialize in the resistance of 75 or very close to it.
In conclusion, the price could be forming a very favorable figure for an upward movement towards the supply zone located within the price range of 88 – 92, the objective is indicated in the 1D graph by a blue rectangle, for this to happen, the price should form an HL that gives us a signal that the buying force is greater and wait for the break of the diagonal resistance, if the price comes to fall from the diagonal support, we could see a recovery in the weekly demand zone in the 65.82 or see a longer drop if the support does not hold. As always I recommend to be very attentive to the action of the price of the next candles and the movement of BTC to avoid traps that invalidate the movement.
As I always say, you have to be aware of the movement, invalidations can occur, there is no 100% reliable analysis, take your own precautions when trading.
You can follow me on Twitter: https://twitter.com/armijogarcia
Get involved!
Comments