Hi friends! Welcome to this update analysis on bitcoin! Let’s get right to it! Looking at the four hour chart, we can see that is just starting to get above the top of that big bull flag! Admittedly, is very light, and that’s because price is still inside of this sideways choppy consolidation area that we’ve been in for the past week. Regardless, getting above the is a good sign, and it increases the odds that we will see a completion of this potential inverted pattern (in green.)
As you can see, the ever important 300 (in orange,) which is equivalent to the 50 from the , is converging with the neckline of the IH&S pattern (in blue,) as well as the center-line of the (dashed grey .) So, there are three resistance areas that are converging, just above the current price action. If can get it’s booty up there, and then break out to the upside, it would be taking out three resistance levels simultaneously. That would undoubtedly produce a sharp rally to the upside. I’m pretty sure that everyone, their mother, their dog, and even the mice are watching to see if this inverted pattern breaks out. So, if it does, I’d be willing to bet that the rally that ensues would be very powerful. For now, I’m watching to see if we can even complete the right shoulder, much like the rest of the world. A breakout to the upside will send LTC to the top of the in pink, somewhere in the low $5000s.
On the , we have a crossover as the is beginning to cross above the zero line as well. Those things are also happening on the back of a that was recently printed. So, it definitely looks like the market is at an inflection point. If you recall back to my analysis (linked below) things have been looking better and better, since that pattern was printed. The was printed on the exact bottom of this entire move, and it’s a pattern that can precede powerful market reversals. It’s interesting to note that the technical picture has been improving ever since then. However, we still don’t have a higher high on the chart. So, we cannot lose sight of the fact that we are still in a bear market downtrend, despite the fact that we appear to be forming an inflection point.
I’m the master of the charts, the professor, the legend, the king, and I go by the name of Magic! revoir.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-JD-
Published at Wed, 02 Jan 2019 13:30:18 +0000
