On long term weekly chart the price action of Litecoin is moving in a descending triangle since 2017. I have also placed the volume profile indicator on the complete price action moving within this triangle. And we can observe that the trader’s interest is very low above $85. At this time the price action is moving around the point of control of volume profile. The triangle is getting squeezed so this is the decision-making time for the price action to break down or break out soon.
The up-channel and moon phases:
Now if we switch on the daily chart then the price action is moving in an up channel. At this time the price line is at the support of this channel. I have also placed the moon phase indicator on the and it can be observed that the full moon is below the resistance and the dark moon is below the support. This is an indication that it will be difficult for priceline to cross up the full moon level and to break out the resistance but it can break down the support easily.
Bullish BAT formation at the support of channel:
If you take a closer look at the price action moving within this channel. Then the price line of Litecoin has completed the formation of bullish BAT pattern on this daily chart. At the moment priceline is moving in the potential reversal zone of this harmonic pattern. Therefore we can expect that the price action can take the bullish divergence from this potential reversal zone and from the support of the channel as well. And this move can lead the price action up to the resistance of the channel. However, if you want to take it as a single trade then the buying and sell targets as per the Fibonacci sequence of bullish BAT can be as below.
Potential reversal or buying zone: $41.51 to $40.95 (this should be stop loss)
Fibonacci projeciton or sell zone: $42.82 to $44.86
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Conclusion:
Even though the different indicators are giving bearish signals, however, the price line of LTC coin has the support of potential reversal zone of harmonic pattern and the support of the channel as well. Therefore we can expect that the Litecoin will be moved up from this level. But the potential reversal zone and the support of the channel should be used as a stop loss.
Note: This idea is education purpose only and not intended to be investment advice, please seek a duly licensed professional and do you own research before any investment.
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