Cryptocurrencies Strategy Trends

LITECOIN: a Bearish Divergence knocking on the “Golden Cross” Door

Market is keeping its boring steady state movement as BITCOIN does while altcoins seems going back and forth alternatively day by day...

Well, not all of them, major altcoins as BINANCE are really independent from this behavior, In the case of BINANCE I am keeping my bullish sentiment constant.

Also LITECOIN has demonstrated a very interesting rise, not related to the Crypto King, BITCOIN, but, unfortunately now I am obliged to tell you what I see in its chart which is not bad but very necessary in order for LITECOIN to keep a proper and sustained growth.

Where is LITECOIN now?

It is, as expected and announced more than 3 weeks ago already almost at the point on which the 50 Days Moving Average and the 200 Days Moving average are meeting, willing to form the famous "Golden Cross" which, for many and me included, would indicate the confirmation of the reversal trend.

But...

LTC has completed till the perfection the three main waves (rounded roman numbers) I have sketched days ago, reaching the target of the 1.618 FIBO level as it was extracted from an EW handbook...

However, the same  count is showing us the path to follow in the coming days and it looks to be a correction forming the 4th...

How can I be so sure about?

I am not 100% sure, first of all, but also the RSI indicator shows me that there is a pronounced "DIVERGENCE" between the last 3 tops in the candlestick chart and the last three tops of the RSI which also touched the overbought area...

This is  what is called "BEARISH DIVERGENCE" and if you google it you can find the simple definition:

"A bearish divergence between the price and a technical indicator is a moderately useful tool for detecting a coming reversal in the bullish trend."

Something like this:

Source.

The definition says "moderately useful tool", I would say that 75% of the times it appears it produces a fall...

For me, the target for the 4th wave has to be the 200 DMA which is exactly coinciding with the (4)th wave of decomposing the last bigger wave... targeting 44.5 USD


I do not know you but I am going to try catch that wave now 🙂

Enjoy!

@toofasteddie

*Disclaimer: This is just my personal point of view, please, do your own assessment and act consequently. Neither this post nor myself is responsible of any of your profit/losses obtained as a result of this information.

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