Bitcoin’s chart shows clear signs of consolidation that has existed since the most recent swing high on April 10th, 2019. Future Span A is below Future Span B, but they are tightening up. The Conversion Line is above the cloud (barely) and both price and the Conversion Line are above the Base Line. Price is also above the cloud. More importantly, the Lagging Span is above the cloud and the current candlesticks. With the Lagging Span above the candlesticks and being in ‘open space’ (a condition where it will not run into any future candlesticks over the next 5 to 10 trading periods). I am waiting for price to cross above the most recent swing high and move above the most recent peak of the cloud.
Cardano is also showing signs of continued consolidation. It has entered into a predictable descending channel and has formed a strong bullish flag, which is a strong continuation pattern. The breakout of the bull flag would also fulfill the conditions for breaking out of the cloud. Ideally, the Conversion Line, Base Line and price would be close to each other prior to a breakout. That condition has been met. The only real condition we are waiting for price and the Lagging Span to trade above the cloud – this would also put Future Span A above Future Span B.
Litecoin has done extremely well over the past few months. On the current 4-hour chart Litecoin has formed a diamond bottom pattern – a rare occurrence on any chart on any timeframe. It is also pressed up against a 1×5 Gann angle and the inner 0.618 Fibonacci arc. I am looking for early entry, before a break of the cloud. I am looking for price to come up to 82.94, which would break the most recent swing high. This would also put Litecoin above the bottom of the cloud, the Conversion Line and the Base Line. While I may be violating the ideal Ichimoku breakout rules, the entry would also put Litecoin above the current bullish pennant (not drawn).
Stellar Lumens (XLM)
Stellar’s USD chart shows a little less bullishness compared to its peers. It has had ample opportunities to selloff and drop, but it has sustained its present value. XLM is getting halted right up against the bottom of the cloud but it is above the Base Line and Conversion Line. I am not looking to take a full position long at this level – and probably not even when it breaks the cloud. The 50% Fibonacci arc has been the ultimate resistance zone for XLM. From the present value area, XLM would need to trade up +10% just to reach the arc. To breach the arc, Stellar needs to travel over 13%. And while that seems like waiting for a +13% move higher is giving up a significant amount of gains, I don’t want to keep my capital tied up for that condition to happen – so I’m waiting.