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Cryptocurrency Analysis: Litecoin surges again

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Cryptocurrency Analysis: Litecoin surges again

Introduction

This article was posted on Thursday, 15:17, UTC.

Bitcoin

My last column discussed the possibility of a close above the 1st arc pair yielding a buy signal. As it turned out, while price crossed the arc for a period, it did not close there. So to date we are still waiting on a buy signal on the daily chart. Tomorrow is an “energy day” (red vertical line). Given that we are still below the arc pair, there is a significant chance that the market will break down, rather than up. My suggestion is that traders be very cautious here.

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Ethereum

Ethereum is still in bullish territory, despite it’s lack of vigor recently. It crossed the 2nd arc pair, but has been hindered by lack of conviction ever since. However, it seems that it is destined to at least rally to the 3rd arc at ~ $63 in the not-distant future. The vertical line is an energy point. Will it be the start of a rally, or will it be a top? It’s still too soon to tell. We will see…

Litecoin

Litecoin has been my favorite trade for the past 2 weeks, and it has not disappointed. It has now almost quadrupled since the rally started. Last night’s rally went through resistance I expected to have more stopping power. As seems to be happening more and more often, my take-profit order was hit way too soon. This is a bittersweet experience. Obviously I’m happy to have hit my target, but wish I had set it higher.

So what’s next?

This setup on the daily chart reveals a few clues. First notice the dotted red line at 45 degrees. (red arrow). That is the 1×1 Gann angle from the ATH in 2013. A close above this line is not trivial. It represents a cross into the “bullish half” of the chart .

As we can see, the advance was stopped by the 1st arc pair on this longer-term setup , BUT, before retreating, pricetime penetrated both of the arcs (blue arrow). This suggests that the arcs are vulnerable. In other words, the odds are good that at some point in the not-distant future the arcs will be tested again, and will yield again. Time will tell.

In the meantime, I imagine price might go back down to test the 1×1 from the ATH at ~ $12. But I would guess that the 1×1 support will hold and a trading opportunity will present itself.

Remember: The author is a trader who is subject to all manner of error in judgement. Do your own research, and be prepared to take full responsibility for your own trades.

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Jim Fredrickson

Jim Fredrickson

Jim has an MBA from the University of Southern California. He has had a long career in both Corporate Finance and IT. Along the way he discovered that trading was a vehicle with great promise, but struggled for a long time without a mentor. After having been knocked down many times and having struggled to get back up, he had an epiphany and realized that geometry was a solution. He shares his experience here. If you do well as a result of suggestions made here, feel free to say thank you :) BTC: 1FUq3GB1Q8zz2JpuBr7YHzVBKnaWoxgmya Follow him on Twitter (@jimfred1276) or email him at jimfred1276 at gmail.

Comments
  • user

    AUTHOR tadej

    Posted on 3:44 pm April 6, 2017.

    Jim, what about RIPPLE?

  • user

    AUTHOR And

    Posted on 4:30 pm April 6, 2017.

    Jim, I have made some nice profit since your last article with LTC. Thanks!!

  • Hello Jim
    Are you suggesting Litecoin will test the second arc pair (green arc) soon?

  • user

    AUTHOR jedashford

    Posted on 6:19 pm April 6, 2017.

    You made me $3K on lite coin in less than a week. I’ll easily pay you monthly for your info. Thank you! I’m following closely.

  • user

    AUTHOR parmmd

    Posted on 6:49 pm April 6, 2017.

    Hi Jim, you wrote LTC might “test the 1×1 from the ATH at ~ $12. But I would guess that the 1×1 support will hold ” What price will this be on the chart? Also can you recommend a book on the charting that you do. Thanks so much.

    • user

      AUTHOR Jim Fredrickson

      Posted on 12:21 am April 7, 2017.

      To my knowledge, there is not yet a book on my trading style. Maybe I will write one someday…

      BTW, the Long-Term 1×1 did NOT hold, as I imagined it would. 🙁

  • View Comments (12) ...
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