I took another good look at Ethereum, and despite being up a massive 80% off the lows, I believe it could have yet another $30 to $45 of upside left in it before the top of this Cycle. Clearly the easy money has been made here, so this isn't a time to be puishing the envelope. But while it remains in a powerfull uptrend and the 10-day moving average continues pointing higher, we do have the wind out our backs.
As I mentioned earlier, price action rules and Ethereum is showing us some positive price momentum. Like all short-term Cycle trends, the action will reverse at some point and is likely to occur when the Bitcoin Cycle tops over the next 10 trading days. Keep a good eye on the rising 10-dma, a daily close below this level now would indicate that Ethereum has found a Cycle Top. In the meantime, there is plenty of room and time for Ethereum to inflict more pain on the bears/shorts.
Litecoin continues to look ripe for a continuation higher via a breakout of a developing inverse head and shoulder neckline. I am of course rightly cautious also, because Litecoin has not exactly been showing us a whole lot of relative strength during these past six months. As you can see below, I have drawn a “possibility” up towards a Jan 15th high, again marking the date where I feel Bitcoin would Cycle top and drag the entire crypto space down with it.
I took the liberty of inverting the Litecoin chart for you to illustrate the inverse Head and Shoulder potential. According to this chart, the H&S pattern looks to have a minimum target of around $42. A word to the wise, technical analysis provides an edge and a possibility, it is never intended to be an “absolute” or a sure thing. I’ve seen far too many people continuously lose when looking to technical analysis as the elixir to trading.
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