Hi friends! Welcome to this update analysis on Litecoin! Taking a look at the four hour chart, we can see that LTC continues it's descent through the blue downtrend channel
. After forming a series of bearish
patterns, LTC has broken down from the bottom of the symmetrical triangle. Symmetrical triangles are continuation patterns, and since we're in a bear market, a break to the downside was expected. Although a breakdown has occurred, it wasn't particularly impressive. Price just sort-of quietly traded out of the symmetrical triangle, in an uneventful way. Currently, LTC is clinging to support at the pink trendline
, as traders take a step back from the market. The MACD
is flattening out, and volume
is relatively quiet, reflecting the uneventful trading action. Personally, I don't expect this low volatility
to persist. It's probably only a matter of time, before the bears trigger the next wave lower. Judging by how resistive the 50 EMA
(in orange) has been, and how it is falling just above the price action, it should continue to put any rally attempts in check. On the downside, the next target will be the 78.6% retrace. A break below that, will put my head and shoulders
target, which so many people criticized, in the sights of LTC. Remember people, I've had that target on my chart since we were trading near $300. Show me another analyst, who gave you that target. It's been there the whole time. Suddenly, it doesn't look so unrealistic — does it? Ultimately, the bear market correction is in full swing, so it's best to remember that the trend is your friend! Don't fight it. Don't fall in love with the upside. Until we see a breakout above the blue channel, the bears will be in total control of this market.
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.***
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