Decoupling –

Bitcoin, Litecoin, and Ethereum are all recently experiencing a decoupling in price action. Most of the time, these 3 currencies all follow each other in short term trend. Recently Litecoin (LTC) is leading the crypto breakout – showing quite an impressive 20% return in just the past 36 hours. Nice! Bitcoin is also consolidating beautifully above the $2550 price range and just recently broke its $2,600 resistance on the GDAX exchange. Ethereum, on the other hand, is caught in a long term downtrend from it’s $412 high earlier in June. I would be BULLISH on BITCOIN and LITCOIN and cautious / BEARISH on Ethereum. Watch with caution on ether as a move to $170 is not out of the question over the next week with the likelihood of considerable profit taking soon to be underway. With LTC and BTC – look for $65 price target and $2,950 price target over the next 6 – 10 days.

Litecoin -

It's been an impressive past 36 hours for bitcoin, and most particularly it's brother litecoin. LTC has just broke out from $50 resistance level on the GDAX exchange and reached $52.90. The breakout happened over the course of just 8 minutes from a LTC price of $49.85. After the $50 mark was cleared, a tremendous amount of LTC was purchased – 60,000 LTC in just 8 minutes (or, $3,000,000 USD). Volatility is quite extreme right now, however, LTC is showing quite strong signs of support above $50 and is currently in a very momentum driven uptrend. Look for $65 on Litecoin over the next several days at this rate, if not by the second week of July.

On the other side of the breakout – the pullback was Just as strong, LTC fell like a bullet shot to the ground - falling from a high of $52.93 to its previous point of breakout at $50 in just 60 seconds. Given such, look for $50 to be a large psychological point of support or resistance for litecoin. The fall back to $50 support was on much lower volume, however, and only about 5,000 LTC were traded in one minute in comparison to the 5k volume traded per minute on the run up. Basically, one can extrapolate that the order book was quite wide due to the amount of volatility. Likely several large orders caused the rapid price change with little volume. Currently, after the fall back to $50, LTC is consolidating with slightly declining volume from the time of the breakout (a good sign). A longer term, multi day bull case scenario would require LTC to hold above $48.50. This $48.50 price target was the previous resistance point which LTC in fact formed a triple top on. Holding above $50 on LTC into and over the night would be the most ideal scenario.

Outlined below is a BULL case scenario for COINBASE:LTCUSD chart
(Screenshot taken around 11:15 pm EST, June 3rd)
1 minute candlesticks
Bollinger bands (20,2)
(tradingview.com)

You can see how an absurd amount of LTC was purchased at approximately 11:12 EST June 3rd. (20,000 LTC in 60 seconds time to be exact, or $1,000,000 USD). Look for $55 price target to be hit in the next 24 hours. Possibly $60 in the next 48 to 72 hours!

Ethereum –

Ether is having a much more difficult time over the long run, showing a strong downtrend on heavy volume, forming lower lows and lower highs from its high at $412 in June. Be quite cautious on this one, as it is quite likely for profit takers to step in this week with some considerable selling volume imho

Outlined below is a BEARISH case scenario for COINBASE:ETHUSD chart
(Screenshot taken around 11:15 pm EST, June 3rd)
180 minute candlesticks
Bollinger bands (20,2)
(tradingview.com)

Ether 1 minute candlesticks
Bollinger bands (20,2)
(tradingview.com)

Bitcoin -

Lastly, but of course not least, is Bitcoin. What a wonderful setup and the start of a beautiful long term breakout here into the month of July and into the 4th of July. I’m looking for a strong upward trend to the upper part of the longer term channel around $3,250 within about 10 days time. Once bitcoin breaks above the $3,500 range I think $4,000 will be quick. I will post a longer, more detailed analysis within the next 2 days. I just wanted to get this initial message out there on my two buy alerts with BTC and LTC, and my sell alert with ETH.

Outlined below is a BEARISH case scenario for COINBASE:ETHUSD chart
(Screenshot taken around 11:15 pm EST, June 3rd)
1 minute candlesticks
Bollinger bands (20,2)
(tradingview.com)

Thanks for the read everyone, and hope you enjoy these breakouts!!
Happy trading,
Chris