Well friends. I think the charts have done a beautiful job in helping us to identify these Litecoin "Buy Zones" over the last several months (see history in Related Ideas below) and once again the charts are showing me a possible scenario. Keyword "possible".
Obviously, the H&S pattern that I've outlined in the chart has not played out yet and very will might NOT. So, once again, this is simply a possibility. But I do feel compelled to share it as, depending on the course of price action this next week, we could see it play out precisely.
You can see that a left shoulder and a head has formed on my Litecoin chart so far. This is a four hour chart. Both have been confirmed by volume. The selling volume may indicate further selling action will ensue next week when volume generally returns and occurs more frequently. I have estimated the neckline, drawn the distance fractal to the top of the head, duplicated this fractal, and then moved it to the estimated neckline break. Notice this distance falls exactly to our old triangle base (6 mo. PURPLE TL)! Interesting. I think this is a good bottom for our new buy zone.
If you see this pattern start to look more and more probable in the next few days, followed by confirmation (a break of the neckline) and you're wanting to play the trade, I would start to cast your buy ladders anywhere from $112 to $132. This will be our new buy zone. You could then hold for the long haul OR use the levels I have already indicated in several of my past posts as future selling targets. They are $162, $172, and $219.
I'm 50/50 in cash at this point and preparing for both bullish or bearish price action. While I'm cautiously optimistic for the future of crypto, part of me says that we are still not out of the woods yet. Long corrections, generally take long correction time and not all indicators that I see are bullish yet .
Happy trading friends and let me know your current sentiment/ideas in the comments below.
Previous Related Post(s):
Latest In T-3 days little Litecoin will blast off!
Older Litecoin Entering $110-160 Buy Zone!