Ichimoku top down analysis for BTC/USD
- On 21/2/18 the price reached the level 248.42 which was the Fibonacci level of 50% and reverse.
- On 7/5/18 the price reached the level 170.54 which was the Fibonacci level of 23.6% and reverse.
It is been observed that Litecoin is drifting lower for the past 6 months.
Based on the technical analysis we can see that the price is creating lower lows and lower highs, failing to recover but each time hits an important Fibonacci level.
On 21/2/18 the price reached the level 248.42 which was the Fibonacci level of 50% and reverse.
Next, on 7/5/18, the price reached the level 170.54 which was the Fibonacci level of 23.6% and reverse.
Now if we take into consideration the Ichimoku system, as well as the other factors on this chart, we can see that the price also respects the Kumo cloud by not be able to penetrate it. It is notable here that we have a valid kumo break out signal as well on the bear side.
The price is below the cloud, the Tekan sen and kijun sen seem to be in a bear formation and the Chikou span is below the price. Those are the clues we need to confirm in order to ensure that the Kumo breakout signal is valid.
What we probably may expect to see is the price to bounce on the 110.34 level which is the level between tekan sen and kijun sen but also an old level of support which may become resistance.
Litecoin Daily Chart