Ever since April 1st, crypto markets have been booming. A random whale buying a large sum of Bitcoin triggered the next bullish movement, sending Bitcoin soaring over $2,000 over the course of the month. However, Bitcoin looks like it could be close to dipping back below $5,000. Despite this, Litecoin is looking poised in a nice buy zone, providing the perfect opportunity to stock up. While the wider crypto markets will likely take a hit if Bitcoin does slide further, it simply provides more opportunity for investors to top up their crypto wallets with lower prices.
Bitcoin Preparing for a Dive
As much as we hate to be the party poopers, Bitcoin is starting to show a clear H&S pattern. On the 50 day charts, there is a clear left shoulder forming around April 10th with a head appearing around April 23rd. Following the infamous fall on April 25th, we will need to see a little more upside before the right shoulder can creep in to confirm the H&S analysis, but we are very close to the right shoulder creeping in. If this is the case, we could see a retracement all the way down as far as $4,400. However, if this does happen $4,400 looks as if it will be the bottom of this H&S movement. It will definitely present a number of great buying opportunities and smart crypto investors will be filling their pockets. The stay at $4,400 won’t last long, so set up stop losses on the way down and place a few buys around the $4,400 mark in order to pick up some cheap Bitcoin should the worst happen.
Litecoin in a Great Buy Zone
Litecoin is arguably the dark horse in the top five cryptos, and if you looks back at performance versus a range of the other top five, it has performed significantly better than most of the rest. The price of Litecoin has bounced from the support zone formed by SMA50, 75 and 70 levels as the market unsuccessfully tried to break below this level. After this failed movement, the price rose above the SMA50 with a reversal signal in place. The RSI and MACD confirm the possibility of an upwards movement on the cards, but it’s safest to wait for one more signal before we can be sure of the upwards movement.
However, if this is correct Litecoin is sat in a juicy buy zone. We recommend trying to get a few buy orders secured at the $76.20 area with a stop loss set based on your appetite for risk. If Bitcoin moves down, it will pull Litecoin with it, so keep an eye out for negative Bitcoin signals – mainly the right shoulder occurring. Our outlook for Litecoin in the long-term is rather bullish.
Stranger things have happened in the crypto markets, and just because a H&S pattern has been completed doesn’t always mean Bitcoin will sink. If the FUD is strong enough, we could see Bitcoin surge to fresh yearly highs. While we hope we are wrong and Bitcoin does surge, H&S has been rather reliable in the crypto markets in the past.
