Green lines -Fibonacci retracements
Litecoin has completed an impulsive downward move (5 wave decline) and is now bouncing higher. If the decline is the start of a bigger move lower, then we should see a three wave upward bounce that should not push price above the 78.6% Fibonacci retracement. So far price has retraced nearly 50% of the decline. The 61.8% Fibonacci retracement level is the most probable level for a trend reversal. It is not necessary for the bounce to reach the 61.8% retracement, but it is very common. So far price has made three waves up from the recent low and end of wave 5. Support is at $51.64 and a break below this level would be a bearish sign. It would increase the chances of starting a new downward move.
