Crypto markets have taken a battering over the past few days, and things aren’t looking like they’re about to perk up any time soon. However, if you know how to trade declining markets, there is a pretty penny to be made. Litecoin is looking set to slide even further, providing us with the perfect opportunity to short the Bitcoin offshoot. Meanwhile, Bitcoin appears to be copying a rather familiar and welcome pattern – the Genesis Bull. If this holds true, we could see Bitcoin smash its way to a new yearly high in the next few weeks.
Time to Short Litecoin
Litecoin looked like it was going to hold its gains earlier this week, but promptly fell from $136 all the way to the $114 mark. While we saw a bullish divergence take over and push the price to $130, there wasn’t enough support to keep the momentum going. Now, we’re all the way back down at $115, and it looks like we could see some upwards movement before another huge pullback to the $100 level.
Wait for the next rise and as we close in on the $130 level, place your short orders. In the recent bullish spikes there has been little retracement and as time went on, the volume faded and price jumps slowed down. This gives us a good indication that Litecoin still isn’t ready to pull past the $130-mark long term – making a great opportunity for shorters. If the conditions are right, we could see it slide as low as $110, giving you just over 16% profit from your short trade.
Bitcoin History Repeating Itself
If there is one thing Bitcoin loves to do, it’s to repeat history. So many patterns over the past few weeks emerged during the previous bull runs and remained true – albeit on a shorter timescale. This time around, we’re starting to notice the Genesis Bull pattern make its way back into town.
After deeply analyzing the 1D scale, we’re seeing a repeat of the 2011 bull cycle that kicked off the Bitcoin boom era. In 2011 – with 2 insignificant breaches – the 1W MA10 supported the parabolic rise all the way until the cycle’s peak. During the 2 breaches, the price consolidated to allow for more buying opportunities – we’re in one of those right now. If this pattern continues, we could see Bitcoin smash its way all the way up to $16,000 in the next week or so.
Crypto markets are still taking a hammering, and as Bitcoin slides it opens up the door to BTC base pair trading opportunities. Keep an eye on Litecoin, it’s going to sink lower – you heard it here first! We’ll see you at $16,000 for a Bitcoin in a week or so!
