Bitcoin gave us a wild ride yesterday, which can be very scary for new comers, or even experienced traders alike who where caught off guard. This is typical behavior for bitcoin after a large rally and characteristic of the third phase of the dragon head pattern (a ghostsquawk exclusive technical pattern). What's next is that we will see some consolidation. In fact, we are seeing this now. This is the final stage before a breakout, in either direction. We have no reason not to believe this will be a bullish breakout. Watch $32.2K, $34.4K, and $35.8K. The latter will be a new high, and is one of our Fibonacci levels.
Ethereum appears to be in the final consolidation phase of the dragon head pattern. ETH too, is likely to have a bullish breakout. If so watch for our Fibonacci extension at $1216 for a target. Be careful, because there are large vacuum zones being formed by ETH's explosive growth. The Kovach OBV is very strong suggesting there is some serious buying momentum here.
Litecoin appears to be in the final stages of a dragon head pattern as well. It has grown a lot more modestly than Bitcoin or Ethereum which have absolutely exploded. This makes it slightly less risky, since there are not these oceans of vacuum zones below to serve as targets when volatility picks up. This is a great long term hold, and it is still affordable to own a whole Litecoin. it is currently sitting at $153, which is perfectly in line with our Fibonacci extension. The next level will be $173, and is our next price target.
