Hi friends! Welcome to this update analysis on Litecoin! Let's jump right in. Looking at the four hour chart, you can see that LTC formed that nice V bottom, off of yesterday's low, and defied the other cryptos as it charged higher. I have to warn you not to get too excited though, because there appears to be more downside in the cards, for the Lite of coin. I'd like to draw your attention to the pink horizontal trendline on the chart. I have had it there for a couple weeks now, and you can see how reactionary it was for LTC. During that powerful selloff on January 16th, we smashed through it, then rallied above it, and then LTC found sloppy support on it for a few days, before breaking down below it again on the 30th. Today's action was very important, because we can see that LTC traded directly up to that level, and then immediately reversed away from it. That, my friends, is confirmation. We have just confirmed resistance at the pink trendline. What once was support, is now resistance. Furthermore, if you look closely, you can see that LTC has fallen into a bear pennant flag, which is below the V and below the 50 EMA (in orange.) Another interesting thing to note, is that the red volume that was created on the reversal from the pink trendline, is actually slightly higher than the green volume bar that was created at the low point of the V. That's showing you that the bears were waiting for the bulls, to push LTC up to my pink trendline. Their sell orders were sitting right there, and they slapped the life out of the bulls, as soon as LTC touched it. Looking at the MACD, we can see that it's drifting sideways, while the bulls and bears fight for control. That, however, brings me to my next point. The rest of the crypto space looks like total garbage right now. I see widespread weakness, that LTC is trying to defy. With that said, don't think for a minute that LTC won't fall if the rest of the market does. We can speculate all day about Litepay, and other fundamentals, but the charts always tell the story. I always say that I can successfully trade a chart, without having any idea what it is. You can show me a chart, without telling me the name of the company, or the coin, or fundamentals, or news, and I will still trade it masterfully. All of the information is right there. The rest is just background noise.
One more thing I would like to point out, is the dotted line from the current bear flag. You can see that the price target (assuming the flag corrects to it's full potential) is back at the $105 level. Ultimately, we need to watch the flag, to CONFIRM that it breaks to the downside. A break to the upside, could easily form a deep cup and handle pattern, which would totally change the analysis. That's why it's so important to watch for the direction of the breakout, before placing any trades.
This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, like, and share on social media. Good luck trading everyone!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-MPC loves you-
-JD-
One more thing I would like to point out, is the dotted line from the current bear flag. You can see that the price target (assuming the flag corrects to it's full potential) is back at the $105 level. Ultimately, we need to watch the flag, to CONFIRM that it breaks to the downside. A break to the upside, could easily form a deep cup and handle pattern, which would totally change the analysis. That's why it's so important to watch for the direction of the breakout, before placing any trades.
This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, like, and share on social media. Good luck trading everyone!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-MPC loves you-
-JD-