🔍$LTC | The bearish butterfly pattern approaches the reversal point🦋📉
Current price: $121.28
Weekly change: -2.71%
On the weekly timeframe, a bearish butterfly pattern is forming — a harmonic pattern used to identify potential reversal areas after strong upward waves. This pattern relies on precise Fibonacci ratios between the movements XA, AB, BC, and CD.
📉 Levels to watch
• Potential reversal area (D): near $133
• Correction targets:
– First target: $117 (38.2% of CD)
– Second target: $107 (61.8% of CD)
• Stop loss: above $135 to avoid a false breakout
📌 Additional confirmation signals
• KDJ indicator in the overbought zone (J = 76.86)
• Parabolic SAR indicating a potential reversal at $109.09
• Reversal candles or a decline in technical momentum supports the bearish scenario
🧠 Trading strategy
• Enter at point D after confirming the reversal
• Use a flexible stop loss above the PRZ area
• Monitor trading volume and momentum to confirm the direction
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