Litecoin seems to be setting up a bull trap
The whole market has dropped a lot the past week, where Litecoin rallied up to the top again. The whole market dropped a bit past 2 days, while bitcoin is again moving up to the highs.
Now at first sight it looks amazing and strong and that it's about to break up. However, there is a very big difference when we look at the volume picture.
It seems like we have made 2 identical setups the past weeks. The blue line on the left where we have a few similar stages and then the red line showing an almost identical movement.
The only thing that is very different, is the volume on this last part. On the left we can see a very big volume increase while it breaks up from that wedge. While we see low volume at all at the yellow wedge. As i am writing this, it continues to move up but it is weekend so manipulation is much easier than during weekdays.
What is important to know i think, the breakout at the blue wedge, was also on a Sunday, so it was also during the weekend. But why did we see such a high volume in crease but today we are seeing very low volume. Now of course, if Bitcoin does hold the 7800ish coming day or 2 and we do rally again with the market, than LTC could hold this move and simply continue. But normally, we always see price drop again when the market moves up with low volume. We saw the same thing with Bitcoin last weekend. Where it continue to move up from the 8300/8400 up to the 8850, while with each step up the volume started to drop with each step. I did not like that at all back then, but it's crypto and during weekends we have seen some very mean moves the past year or 2.
Since it continues to move up, it's difficult to say what it will do short term. But all i can say is, unless we see a big price jump up, like a squeeze to lets say 130ish (so straight through the long term resistance around 120 (check my previous analysis), i think any slow and low move up will be very dangerous and a big dump could happen at any second.
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Previous analysis:
Now at first sight it looks amazing and strong and that it's about to break up. However, there is a very big difference when we look at the volume picture.
It seems like we have made 2 identical setups the past weeks. The blue line on the left where we have a few similar stages and then the red line showing an almost identical movement.
The only thing that is very different, is the volume on this last part. On the left we can see a very big volume increase while it breaks up from that wedge. While we see low volume at all at the yellow wedge. As i am writing this, it continues to move up but it is weekend so manipulation is much easier than during weekdays.
What is important to know i think, the breakout at the blue wedge, was also on a Sunday, so it was also during the weekend. But why did we see such a high volume in crease but today we are seeing very low volume. Now of course, if Bitcoin does hold the 7800ish coming day or 2 and we do rally again with the market, than LTC could hold this move and simply continue. But normally, we always see price drop again when the market moves up with low volume. We saw the same thing with Bitcoin last weekend. Where it continue to move up from the 8300/8400 up to the 8850, while with each step up the volume started to drop with each step. I did not like that at all back then, but it's crypto and during weekends we have seen some very mean moves the past year or 2.
Since it continues to move up, it's difficult to say what it will do short term. But all i can say is, unless we see a big price jump up, like a squeeze to lets say 130ish (so straight through the long term resistance around 120 (check my previous analysis), i think any slow and low move up will be very dangerous and a big dump could happen at any second.
Please don't forget to like if you appreciate this :)
Previous analysis:
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