Welcome friends, to this ever-so-pleasant, non retaliatory analysis (I promise) on LITECOIN!!! Let's get it! =D Looking at the four hour chart, we can see that the inevitable has happened. The pink uptrend channel has failed! Let's walk through the action, to see exactly what happened here. We had the big strong bull flag, that was produced inside of this beautiful pink uptrend channel. It broke out to the upside, on strong bullish volume, and then reversed sharply, to form new bear flag, that began pushing right into the bottom of the channel (black bear flag.) The size of the recently created bear flag suggests that we could see further downside. However, the previous candle is slightly hammer like, and has bounced off of the 200 EMA (in purple) and the 61.8% retrace. With that said, you can see that the sell side volume is taking over on the chart, and it's probably only a matter of time before the 200 is broken.
I want to remind you all that this inverse head and shoulders pattern is hypothetical. Technically, there is a good chance that it could fully materialize, but until we see a confirmation reversal, to form the trough of the right shoulder, it's just hypothetical. Bitcoin looks like it's forming an inverse head and shoulders pattern too, but BTC also looks like it could fall further. Because of this, I've extended the depth of the right shoulder, to a point of heavy support (maroon trendline.) I think a fall of this magnitude, could be equivalent to the fall that BTC could make, in order to form it's hypothetical right shoulder. I don't want to mislead you though. Let me be very clear. This inverse head and shoulders pattern is HYPOTHETICAL. Until we see the reversal, it's just theory, but it keeps our eyes open to future possibilities. Do not, do not, do not lose sight of the fact that we are in the midst of a corrective move. With that said, when I look at the broad picture of this chart, it looks like a rounded bottoming formation. It looks like we've fallen from the all time high, hit a low, and now we're forming this POTENTIAL inverse head and shoulders, before we blast off. That's only speculation though. We've made some higher highs, now let's put a higher low on the map. That's the evidence we need to see as confirmation of this theory. Currently, I think a break of the 200 EMA could happen soon. You can see that we've actually pierced it on the last candle, weakening it as support. Bitcoin is currently at slight support, but it could fall lower to it's green dashed trendline, which could drag LTC down to the maroon support level. On the other hand, this level could hold, should Bitcoin hold the support that it's currently testing. With that said, the height of the bear flag on the chart here, suggests that we will see further downside. For now, let the market do it's thing, and show us when it wants to reverse. From there, we can reassess our potential inverse head and shoulders pattern. I know there are some if then statements, but you have to understand, that's how intermediate moves are properly assessed. Should the formation of this inverse head and shoulders pattern complete itself, I will give you some real price targets to sink your teeth into, just like always. Looking at the MACD, you can see that the rising green trendline has also been broken, signaling a bearish continuation in momentum. I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic. Au revoir.
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-
I want to remind you all that this inverse head and shoulders pattern is hypothetical. Technically, there is a good chance that it could fully materialize, but until we see a confirmation reversal, to form the trough of the right shoulder, it's just hypothetical. Bitcoin looks like it's forming an inverse head and shoulders pattern too, but BTC also looks like it could fall further. Because of this, I've extended the depth of the right shoulder, to a point of heavy support (maroon trendline.) I think a fall of this magnitude, could be equivalent to the fall that BTC could make, in order to form it's hypothetical right shoulder. I don't want to mislead you though. Let me be very clear. This inverse head and shoulders pattern is HYPOTHETICAL. Until we see the reversal, it's just theory, but it keeps our eyes open to future possibilities. Do not, do not, do not lose sight of the fact that we are in the midst of a corrective move. With that said, when I look at the broad picture of this chart, it looks like a rounded bottoming formation. It looks like we've fallen from the all time high, hit a low, and now we're forming this POTENTIAL inverse head and shoulders, before we blast off. That's only speculation though. We've made some higher highs, now let's put a higher low on the map. That's the evidence we need to see as confirmation of this theory. Currently, I think a break of the 200 EMA could happen soon. You can see that we've actually pierced it on the last candle, weakening it as support. Bitcoin is currently at slight support, but it could fall lower to it's green dashed trendline, which could drag LTC down to the maroon support level. On the other hand, this level could hold, should Bitcoin hold the support that it's currently testing. With that said, the height of the bear flag on the chart here, suggests that we will see further downside. For now, let the market do it's thing, and show us when it wants to reverse. From there, we can reassess our potential inverse head and shoulders pattern. I know there are some if then statements, but you have to understand, that's how intermediate moves are properly assessed. Should the formation of this inverse head and shoulders pattern complete itself, I will give you some real price targets to sink your teeth into, just like always. Looking at the MACD, you can see that the rising green trendline has also been broken, signaling a bearish continuation in momentum. I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic. Au revoir.
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-