Time for a Crypto Pullback- LTC and others
For those of you who don't know the cup and handle pattern (C&H) I hope this post changes that. With LTC and several other cryptos I've noticed this pattern in past weeks. In order to from a valid C&H we need to see a rounded bottom to the cup (no V bottoms or excessive chop in the base) followed by a handle that retraces roughly 30-70% of the cup to be valid. In this case we made a nearly 50% retracement. The projected price target is taken by measuring the depth of the cup and projecting that delta from the bottom of the handle (this is done with the shaded vertical rectangles in my chart). We can see that the expected bullish price movement has basically played out and Fibonacci based pivots (Resistance 2) has played out near perfectly.
Its entirely plausible that we move up a little more but a pullback at this point would be healthy and set us up for very bullish price action going forward based on Elliot Wave projections beyond the scope of this post. Also note we are seeing stark bearish MFI divergence shown by orange trendlines. As far as retracement from a current level ideally we may dip below the volume weighted moving average in blue while holding above the pivot point (hard to see in graph) in the low 60s. As always anything can happen, use this post as input, and make your own decisions. Thanks for reading. Hit me up w/ any questions and comments you have.
Its entirely plausible that we move up a little more but a pullback at this point would be healthy and set us up for very bullish price action going forward based on Elliot Wave projections beyond the scope of this post. Also note we are seeing stark bearish MFI divergence shown by orange trendlines. As far as retracement from a current level ideally we may dip below the volume weighted moving average in blue while holding above the pivot point (hard to see in graph) in the low 60s. As always anything can happen, use this post as input, and make your own decisions. Thanks for reading. Hit me up w/ any questions and comments you have.
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