Hey again. Another week, another coin... Today I'll take a look at the Litecoin/Euro chart, which looks promising. First things first, here's the chart:
As you can see I was looking at the big picture first. This is the daily chart and my analysis starts with two significant highs, that I projected into the future (blue trendline). The first high occured on the 24th January 2015. It has been significant, because it was ending a long downtrend as you can see. The second high occured on the 10th July 2015. As I mentioned, I took these two highs and projected both into the future. It's not a surprise that the trendline got tested a third time just a few days ago on the 9th May 2017. So what did I do next? To answer that here's another picture for you:
Again I was looking at the daily chart, just a shorter time-period. On this one you can see that I drew a yellow trendline, that identifies the current uptrend. With both trendlines I created the blue triangle and added the Bollinger Bands indicator to the chart. The Bollinger Bands normal distribution (red line) was crossing into the blue triangle on the 5th of May, which is an indicator that the course will belong within our triangle for some time. I expect it to bounce up and down within the triangle and as the triangle runs narrow breakout into a specific direction.
My thought is that cryptocurrencies, especially the good ones such as Litecoin, have a higher chance to start an uptrend (look at the current market capitalization - $69 billion crazy!!). That's why I assume it will breakout and start an uptrend. With that in mind I wanted to know, where it could go. Therefore I added the fibonacci retracement. Look at the big picture again. Doesn't the 44€ mark (1.272 line) look sexy to you? ;)
Sidenote: Also the RSI indicator is showing an uptrend.
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