Litecoin has produced a rare but powerful chart pattern over the past 48 hours – a triple bottom combined with a triple top. It can only be seen clearly on the hourly timeframe. A picture speaks a thousand words, so without further ado, lets check it out below (click to expand):
As we can see, price has been fluctuating between 12.7 and 13.7 for the past two days, producing this unique pattern of a triple top and triple bottom.
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In hindsight it’s easy to spot, but in real time it can be much more arduous. The triple bottom is clear. The triple top is still in formation. This is what we need to keep an eye out for. What we do know is that this area, (around 13.7), has been tested twice before with a complete rejection. Even now we’re already seeing price stall here during the formation of the third potential top.
Also, if you look at the latest two bull candles that opened and closed above the upper Bollinger band, you’ll see how both of their upper wicks are very long in comparison to the length of their respected entire candlesticks. This tells us that at the very least, some resistance was probably going to come into play.
So, will the third top come into fruition? Hard to say at this moment. Even though the Stochastics are in overbought territory and starting to head downwards, along with the Accelerator Oscillator just having turned red, there are actually other conflicting technicals on the higher four hour timeframe. Indeed, on the H4 timeframe, we’re seeing a convergence to the 23.6% Fib level, so we may see some ranging for the next few candles before any clear direction is established.