Litecoin price is up nearly 10% in the last 24 hours, but the recovery might only have just begun. That is if a “technically flawless” chart pattern is valid, and resolves to the upside.
The pattern has taken years to form, and it could result in a move of “biblical proportions.”
Litecoin Forms Technically Flawless Adam And Eve Double Bottom
The speculative nature of cryptocurrencies like Bitcoin and Ethereum causes their price action to adhere to traditional technical analysis patterns fairly well. When movements are less extreme, patterns reliably form. After they resolve that tens to change and cryptocurrencies go parabolic.
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For example, after a sideways channel in 2017, Litecoin exploded from $4 to more than $400 in roughly 250 days. The reason being is that resolutions in crypto lead to extreme sentiment changes and FOMO can ensue. After more than four years since then, however, LTC holders are praying to anything holy that the altcoin rises from the dead.
An Adam and Eve double bottom couldn't be more clear | Source: LTCUSD on TradingView.com
A technically flawless chart pattern called an Adam and Eve double bottom could be the salvation Litecoin needs. According to the pattern, after a breakout from a resistance line and completed retest, the cryptocurrency called digital silver should see a move of biblical proportions.
Another Chart Pattern Could Suggest Accumulation, Ascent To Heavens
Another, less-clear pattern could also be brewing in the altcoin once ranked in the top ten cryptocurrencies by market cap. If this one is valid, called a Livermore Accumulation Cylinder, a return to those ranks is likely.
Could a Livermore Accumulation Cylinder be forming in LTC? | Source: LTCUSD on TradingView.com
The pattern popularized by market wizard Jesse Livermore, suggests that very special assets are accumulated in broadening wedge-shape pattern. After bouncing around several times, demand overwhelms any available supply and a lack of sellers sends prices catapulting higher.
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A massive move results, and what is left on the price chart is a mountain worthy of worship. Getting out near the top is necessary to preserve any returns, or else any holders of the altcoin could end up stuck waiting another four years or then some for the cycle to happen all over again.
Interestingly, the Massachusetts born day trader, despite his success, died by suicide and with more liabilities than assets due to the fallout of the economic crash of 1929. Iconic career trader Peter Brandt claims Livermore was able to call the top in Apple stocks from his grave.
— Tony “The Bull” Spilotro (@tonyspilotroBTC) August 13, 2021
Follow @TonySpilotroBTC on Twitter or via the TonyTradesBTC Telegram. Content is educational and should not be considered investment advice.
Featured image from iStockPhoto, Charts from TradingView.com