Yesterday I explained how Litecoin had produced a powerful classical chart pattern – the triple top with triple bottom, with the third top soon after coming into full play.
Here is the chart I posted yesterday, identifying the triple bottom and triple top (click to expand):
I mentioned, “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… This tells us that at the very least, some resistance was probably going to come into play.”
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And so it happened; as can be seen via today’s chart below (click to expand):
Now, for the current chart above, I’ve performed the Fibonacci study from the low of the third bottom at 12.7, to the high of the third top at 13.86. Thus, we can see how price completed the third top by falling down to multiple Fib levels, eventually hitting the 78.6% Fib retracement level at 12.95.
However, I’m definitely expecting price to bounce up now, since not only are we at 78.6%, but price is also below the lower Bollinger band. It may hit 13.13 at the 61.8% Fib within the next couple of hours, although I wouldn’t expect a rise above that, since we have both the Accelerator and Awesome Oscillators as pretty bearish – telling me we’re probably going to see some further bulls after price corrects itself with regards to the Bollinger bands.