Alright everyone, this is going to be a fairly quick update. Hopefully after you read my last update you were quick to flip long on Bitcoin and the other majors once $6,300 broke as covered. Unfortunately, I was actually away during a good portion of that move and didn't really get until $7,000 broke but luckily added a fair bit then and a lot more when it was re-tested on May 17th. Hoping everyone bought some Litecoin in the mid-$60's as well as it's nearly double now.
Bitcoin Weekly - Keeping it simple
Bitcoin has blasted through most weekly resistances and that may continue to be the case here but I'll be closing a decent amount of my long positions in the vicinity of $9,500. It's arguably the most significant weekly obstacle that still stands and hits the 0.382 level perfectly. If it breaks that level, great, I'll evaluate there but still planning to take at least some profits out of my trades. Until then, any move to the $8,200-8,400 region is likely the last dip before target. Of course, if $8,200 gives out I think we'll see Bitcoin make a substantial move downwards so keep your risk in check.
Really quick look at the daily here. You can see there's weekly and daily supports scattered from $8,200-8,450 so it's a critical level for Bitcoin. If price revisits it and bounces, would be a fantastic buy the dip opportunity. On the flip side, if BTC loses that level I think there's some downside to be had for sure. There's a key order block in the low $7,000's but it's already been tested so I wouldn't be super confident in it holding again. Most likely scenario is filling that wick down into the order block from $6,200-6,500.
Litecoin is coming into a pretty major resistance here. Probably not the ideal spot to jump into longs but to be honest I think it clear it sooner than later; bullish momentum is real in the crypto market right now and the halving event isn't far off. Break above here and we're running to the $170's pretty quick so any dips from this point are a clear buy. More rationale behind that in the daily char to follow.
Support: Technically around $92 but think the psychological $100 mark holds fairly strong
Alright, chart's a bit messy but here's the key takeaway - Litecoin just took the ~$112-115 level which is the bottom of a key range for LTC. As long as price holds here, or loses it and regains it, I really think any coming moves are just a distraction before $175. Note that there's bearish divergences showing up on RSI so there could be a pullback on the cards, but shouldn't be huge and like I said, just a distraction leading up to the halving event. As mentioned in the weekly chart, probably wouldn't jump in right here but long any pullback we get or if we hold this range for a couple daily candles.
That's it for this week - if you want more regular content, be sure to follow me on Twitter. Decide to trade Bitcoin or Litecoin based on my charts above? Do me a favor and register at Bitmex or Binance (margin trading coming soon!)
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