LTCCNY - Litecoin Could Be About To See The Day Light - Updated by DanV on TradingView.com
11 January 2015
Unfortunately, the support we identified in previously published chart gave way for another bearish move. Reviewing the wave counts are not made easy in instruments likes this particularly with lack of historical data.
However, it seems at least in this bearish cycle a pull back could be anticipated for the following reasons:
1. RSI at potential support.
2. ADX suggesting that the move is very stretched and corresponding pull back in price might be already in progress.
The Fib Extensions could often help but most of these are failing due to lack of proper pivot points and the fact that it has declined so much. Nevertheless I have adjusted the counts for wave (iv) & (v) suggesting that wave (v) is well advanced and could complete soon but caution should be exercised.
Conclusion is that once we get a pull back we still have 1 more drive to complete wave iv of (v) that could form a bottom near 8 or probably 5.
RSI noted above is also showing larger divergence in formation which if it holds could support the idea that final low could develop around 8 -5 zone.
LTC/BTC ratio chart has also broken down and is shown in the updates and comments with counts adjusted accordingly.
Similarly, the BTC daily chart we have been following as our roadmap also has some way to go yet, hence further weakness is expected and may be both will bottom together.
So unfortunately the light of day will shine through but appears to be postponed for now.
As always, do your own analysis and be quick to adjust your views according to progression of price data with time.