So the next few charts are about Bitcoin, Litecoin, and Ethereum against the United States Dollar. The Bitcoin chart below shows my predictions for a positive range bounce off the support line at %38.20 fib line (Yellow Zone) and also a draw down to the lower support, feeling friction from the ceiling at the same zone. The %61.80 fib line (Teal Zone) can draw us down all the way to $7.5KUSD
So LTC’s big news is that Charlie Lee resigned, the founder of the Litcoin Foundation, the dev team responsible for Litecoin, and has also dumped all his “shares” aka coins, citing “conflict of interest” as to why he would do such a thing. This is reflected below in the Technical Analysis mock up, the fib retracement had a massive 44% correction (309H 173L), bringing the MACD indicator to flip its behavior. This will attempt to bounce along the support at fib %38.2 and %50.0 but since it has tested the %61.8 it will undoubtedly bring us to some pre-Q4-bubble lows of $48-65USD .
Ethereum charts are a little more complicated today. There exists a real short bubble and opportunity for downtrending range trades. But the velocity of transfer through the fibonacci retracement zones leave little room for Technical Analysis VooDoo. I would suggest watching this instrument closely, having very tight stop losses with a clear exit strategy. This instrument has a potential to drop way down to its pre-long bubble of 250, or linger around the 475 range for a while before testing the ceiling at 900 yet again. The minor MACD blips resulting in huge swings shows intense volatility and higher risk margin than the previous two instruments discussed in this article.
As always lock in your profits/stop losses BEFORE the swing occurs, and make sure to tip your waitress.