Multi-structural Upside Hints at Impulse
Litecoin has broken past its February high of $250 this week and it’s looking to get closer to the all-time high of $370.
The main Elliott Wave scenario suggests that we are extending higher in intermediate wave (5); this is the last and final bullish impulse wave, compiled by minor waves 12345.
Since wave 1 completed at the 0.382 Fibonacci extension of waves (1)(2)(3)(4), wave 3 is expected to reach the 100% Fibonacci extension at $390.
Should this play out to bulls’ favor, a correction in 4 could then be followed by the last upside move in wave 5 of (5), near the 1.382 Fibonacci extension of waves (1)(2)(3)(4) at $476.
At this level, a cluster between the short and long-term channels is likely to form.
Depth of Correction to Determine Cycle Completion
With that scenario in mind, wave 3 just reached the 1.618 Fibonacci extension of waves 12 and a correction could be therefore expected any minute.
Despite the depth of the pullback is unknown, we can expect wave 4 to remain a tad higher than wave 2’s low. That said, the 0.618% Fibonacci extension of waves 12 makes a good candidate since it respects both conditions.
Once the low is in, prices could be expected to make a last corrective upside move towards fresh highs. However, if wave 5 falls short fresh all-time highs will be harder to see.
Subjective but Still Relevant to Cycle’s Extension
Wave (4) completes at the same low we identified in the main scenario. However, this time as a triangle.
Although one would think that makes no difference to where the cycle completes, in reality, and based on market research, we often see wave (5) extending the range of the opening of a triangle. That would be near $370.
Should this become a triangle in wave (4) we will know only once the last wave prints wave (5).
Elliott Waves Suggest More Upside Either Way
Any of the patterns the current market structure shows, see more upside for litecoin, which may or may not be used as an indicator itself.
Often, the market datashow two or three scenarios that suggest an opposite course of price action. However, rarely, when most high probability scenarios point at the same direction, this can be used to our advantage.
About the Author
Stavros is an licensed Forex professional, currently heading the investment research team at a reputable broker. He has demonstrated history in proprietary trading, Elliott Wave analysis and educational content writing. He is seen writing in the best sites for traders.