#49 - Litecoin's second attempt & Bitcoin denial
What is up everyone? Hope you are doing alright. I'm excited because tomorrow, together with the faculty, I'm going to fly on an airplane to gather some data for my upcoming yearly project (for uni). Let's see how that goes :)
Anyway, a couple of posts ago I called a premeditated HVF on Litecoin. At the same time, it was mentioned that the monitoring of the progress was not done and this is what we have at the moment:
Have to say that the setup looks clean with a Risk:Reward of 4.2 running through the 280-290$ level (yes I know the Euro chart is displayed above). What I'm really digging is this Bollinger Band squeeze on the daily timeframe:
Remember, the Bollinger Band squeeze indicates "decision time". It does not indicate the direction in which the price is going to move. However, because we have previously been going up, that is our assumption for this case as well.
Again, this will depend on what the BBB (Big Bitcoin Bo$$) is going to do. I have to come clear I have been looking at really low timeframes the entire day and it just does not seem to figure itself out. The chopping, almost random price action makes it impossible to trade.
On a simpler, macro view, we appear to have cleared the logarithmic diagonal resistance:
However the volume has been clearly lacking thus far. Just check below:
I have to be stubborn and still say that the blue box is still in play. At the same time, I found a pattern on Twitter which could play out.
We could see a really small leg down followed by the long awaited explosion and arguably, the start of the altcoin season. This is represented by the Denial stage above, which in fact, appears to be ruling the current sentiment. The "not much is happening" attitude on Twitter (my best proxy for market sentiment) seems to suggest just that.
Personally, I'm going to play the Litecoin chart rather than the Bitcoin breakout because the first one will most likely be influenced by the latter. In addition, the percentage gain for Litecoin appears to be greater than just holding Bitcoin during the same time period (in my view).
Lastly, if you haven't yet loaded up on Metal, I strongly recommend you doing so. The price action has been going back and forth the last couple of days but it's just a matter of time until this plays out:
Smaller HVF's forming on lower timeframes as well. Looking very promising.
In case you don't have no clue of what a HVF is, check out the post where I go over the basis of HVF Theory and what characteristics of price behavior I am looking for on a chart:
https://steemit.com/trading/@beindependentbb/19-what-is-the-hunt-volatility-funnel-hvf
Hope you crush it the next coming days!
Disclaimer: Cryptocurrency trading is highly speculative in nature which can mean currency prices may become extremely volatile. Cryptocurrency trading carries a high level of risk and may not be suitable for all investors. It is possible that you will sustain a loss of some or all of your initial investment so never risk capital that you cannot afford to lose. You acknowledge and agree that no promise or guarantee of success or profitability has been made between you and BeIndependent [bit by bit].
►Free e-book on How to Start Your Cryptocurrency Journey: http://beindependentbb.com
►Join us on Telegram: https://t.me/beindependentbb
► Find us on Instagram: https://www.instagram.com/beindependentbb/
►Find us on Twitter: https://twitter.com/beindependentbb
![](https://steemitimages.com/640x0/https://steemitimages.com/DQmfECkkKGvrA5wcZ7JYLLP5k3HDsqDfeTUHtfyGngWbATS/image.png)
Looks plausible to me.
Seems to be playing out as we speak. Will see how it ends up later today :)