After a brilliant start last week, buyers in two days were able to reach the $140 mark and all subsequent days the price consolidated in a narrow range of 7% under the level of $140. The sharp growth from $110 to $140 occurred on increased volumes that proves to us the power of buyers at the moment.
Buyers of Litecoin have updated the local high faster than buyers of Bitcoin did. After updating the local high by Bitcoin buyers, Litecoin kept in the consolidation without allowing the price to fall. It confirms the fact of great interest in this coin, which we wrote about in the previous analysis: what is the $140 level?
In the past, in January and March 2018, sellers stopped at this mark, but later this level quietly broke through both sellers and buyers, which diminished its importance and the likelihood of starting a correction from this level. If you look at the 4-hour timeframe, how exactly buyers came to test $140, then it is clear that the volumes have increased significantly, but the price has frozen its growth:
After the first test of $140, volumes gradually began to fall and at the moment the following attempts to break through this level were not successful. Buyers need to keep a price above $128, what they have been able to do on 13-14 June, to continue their growth. Also, on a daily timeframe, except the level $140, a dashed trend line is clearly visible, which buyers can not break through since 15 May. In fact, since 30 April, the price is moving at the bottom of the growth channel and buyers have the prospect of accelerating growth up to $180.
During the week, the marginal positions of buyers increased significantly only at the beginning of the week. Further, the mood of buyers was divided, consolidation confirms it:
Sellers also increased their positions at the beginning of the week, but the increase in positions from 11 June ended in the closure of these positions from 14 June to this mark, from which began the growth:
Sellers are clearly more emotional and less stable than buyers.
By our interpretation of the waves, the wave (5) is formed now and at the moment it is equal to the wave (3), which began in February 2019:
If we draw the lower trend line along the local lows of waves (1) and (2), and the upper trend line along the local high of the wave (3), then we have a growth channel where the price is now located near the upper trend line:
Given how long the growth takes place without tangible corrections, we see a high probability of a rebound from the trend line and the beginning of the correction. However, you need to follow the consolidation in the range of $128-140. After a breakthrough of $140, buyers will have a perspective to prices $160 and $180. After a breakthrough of $128, sellers have a prospect of $116 and $100.
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About the Author: Peter Oleshchuk is a trader and technical analyst. He has spent two years studying and analyzing the crypto market. Image Courtesy: Bitcoin News