There have been quite a few bullish developments in terms of on-chain metrics for BTC and LTC over this last week.
Starting with LTC on-chain activity we see median transaction values breaking out to new highs above our May '21 highs:
Let's see if we can continue this breakout. So far we've had two data points above the range we've been in since Nov. '21 and if we continue that would suggest this move isn't a fluke.
Total LTC sent on-chain has recovered into our bull market range of last year:
I had been a little bit concerned when we broke below our '21 summer lows, but it is good to see that we're forming some bullish divergence here and moving back into the range we'd been consolidating in. Price should follow if this momentum continues.
Hashrate has broken out above the 420 TH/s level we had been struggling to break the past few months:
It looks ike we're retesting this 420 TH/s level from the topside and will continue to move higher.
Now, let's take a look at BTC exchange netflow:
Notice that this is the largest outflow from exchanges in terms of BTC that we've seen since 2017. This is pretty significant if this data point is legitimate, which I do think it is given that it's coming from Coinbase, which has a history of real large outflows. Who do you think purchased $1.5B BTC? Was it a nation state working with Samson Mow like Mexico? Or was it a large institution that is following Michael Saylor's lead?
Let's move over to some price charts. The LTC/BTC chart has broken back into the descending wedge pattern it had been in for over a year:
I was hoping that we could continue sideways or go lower on this ltc/btc pair so that we could get a Weekly TD-9 Sequential Buy Setup. This would form a perfect 9-13-9 reversal if we are to get it.
Moving onto the stock market, we are going to form a TD-9 on the Weekly Chart next week as long as stocks don't rapidly reverse and close above that 5 candle at around 4350. This does give us of a high probability to find a reversal, which would be good for BTC and LTC.
If we zoom in on the daily timeframe we can see that we could potentially form a TD-9 on Tuesday:
If we fall on Monday below the close of that 4th candle then we should get a 9 on Tuesday. This is the first day of the FOMC, which tells me that there is a higher probability of a more Dovish Fed than the market expects.
If you prefer video explanations of what I discussed in this article, I just made a recording discussing these ideas.
Thanks for reading!