Gloom And Doom Fills The Room! Litecoin! (LTC) Master Analysis!
Hi friends! In an attempt to give my lovely viewers a heads up, on the potential dangers of this market, I would like to share this gloomy, yet very realistic analysis with you.
Now, let's take a look at Litecoin! Looking at the four hour chart, we can see that Litecoin has rallied significantly off of Wednesday's low, but don't get too excited just yet. LTC tried to rally above the "critical resistance" level, and periodically broke above, only to quickly reverse back to the downside. On the chart, we can see that LTC is also failing to get above the top of the downtrend channel (grey dots.) Thus far, LTC has produced two failed attempts to break above. Looking at the volume, we can see that it has dropped significantly, indicating exhaustion in the bulls. Additionally, the MACD looks like it wants to level out.
I'm sure you've all noticed, that I've drawn a big bear flag over the recent price action (black flag.) I've noticed several other bear flags, in BTC, ETH, and many other cryptos, but some of the flags are not that easy to distinguish. However, most cryptos are currently trading in synchrony, so they're producing similar patterns on the charts. Looking at LTC, it appears as though the bear flag may already be breaking to the downside. It isn't an extremely clear bear flag pattern, but I believe it is a bear flag nonetheless. As I was doing this analysis, I noticed something profoundly interesting. If you recall from my older LTC charts, when the all time high was made, and it formed that big head and shoulders pattern (top left,) my analysis showed that LTC could eventually fall to about $106. When I saw that, I put a "head and shoulders target" of $105.94 on my chart. Immediately, I was inundated with hateful responses from people who were telling me that I was an idiot, and that technical analysis didn't apply to crypto charts. Today, looking at this potential bear flag pattern, we can see that it's price target aligns perfectly with the price target of the head and shoulders pattern. Incredible! Suddenly, $106 doesn't seem so unrealistic. Technical analysis can often come together in the most beautiful ways — i believe, because markets are fractal in nature. I'm not saying for sure that we will get down there. I'm just saying that based on the structures formed on this chart, that is the likely target area. On the downside, initial support rests at the pink trendline. Below tat, there support levels are sparse and relatively insignificant. On the upside, there is major overhead resistance. We have the critical level (red dots,) the top of the falling parallel channel (grey dots,) the 50 EMA (in orange,) the 61.8% retracement level, and the 200 EMA (in purple.) Clearly, the path of least resistance is to the downside. That isn't to say that it's impossible for LTC to rally higher from here. I'm just presenting solid evidence, to show that a continuation higher is very unlikely.
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-
Now, let's take a look at Litecoin! Looking at the four hour chart, we can see that Litecoin has rallied significantly off of Wednesday's low, but don't get too excited just yet. LTC tried to rally above the "critical resistance" level, and periodically broke above, only to quickly reverse back to the downside. On the chart, we can see that LTC is also failing to get above the top of the downtrend channel (grey dots.) Thus far, LTC has produced two failed attempts to break above. Looking at the volume, we can see that it has dropped significantly, indicating exhaustion in the bulls. Additionally, the MACD looks like it wants to level out.
I'm sure you've all noticed, that I've drawn a big bear flag over the recent price action (black flag.) I've noticed several other bear flags, in BTC, ETH, and many other cryptos, but some of the flags are not that easy to distinguish. However, most cryptos are currently trading in synchrony, so they're producing similar patterns on the charts. Looking at LTC, it appears as though the bear flag may already be breaking to the downside. It isn't an extremely clear bear flag pattern, but I believe it is a bear flag nonetheless. As I was doing this analysis, I noticed something profoundly interesting. If you recall from my older LTC charts, when the all time high was made, and it formed that big head and shoulders pattern (top left,) my analysis showed that LTC could eventually fall to about $106. When I saw that, I put a "head and shoulders target" of $105.94 on my chart. Immediately, I was inundated with hateful responses from people who were telling me that I was an idiot, and that technical analysis didn't apply to crypto charts. Today, looking at this potential bear flag pattern, we can see that it's price target aligns perfectly with the price target of the head and shoulders pattern. Incredible! Suddenly, $106 doesn't seem so unrealistic. Technical analysis can often come together in the most beautiful ways — i believe, because markets are fractal in nature. I'm not saying for sure that we will get down there. I'm just saying that based on the structures formed on this chart, that is the likely target area. On the downside, initial support rests at the pink trendline. Below tat, there support levels are sparse and relatively insignificant. On the upside, there is major overhead resistance. We have the critical level (red dots,) the top of the falling parallel channel (grey dots,) the 50 EMA (in orange,) the 61.8% retracement level, and the 200 EMA (in purple.) Clearly, the path of least resistance is to the downside. That isn't to say that it's impossible for LTC to rally higher from here. I'm just presenting solid evidence, to show that a continuation higher is very unlikely.
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-
評論:
I mean to say "Below that, the support levels are sparse and relatively insignificant." Sorry for the type-o's.
評論:
meant*** LOL
Can I even type today? =D
Can I even type today? =D