Hello again everyone, hope that everyone is doing well.
Litecoin has recently broken below it's uptrend formation, as a result of Bitcoin breaking below an important . It seems that both of my previous 'bull trap' TA's may become terribly accurate. Is it time to pull out and run?!?
Absolutely not. Just because a recovery attempt uptrend formation is broken it does not mean BTC or LTC are going down to $0 or anywhere near! We all knew that Bitcoin breaking above the important reversal resistance of 12K was going to be hard, so this should not be a huge surprise for anyone. FUD headlines have had much less of an impact on the recent drop, I blame the investors/traders getting more intelligent (good thing). Profit taking.
There has been a significant amount of accumulation within Bitcoin and Litecoin. For example the current market cap is at roughly 425 Billion and Bitcoin is at $9835. The previous time we had a 425 Billion market cap was on Feb. 13 and Bitcoin had a closing price of around $8854, $1000 less. Take the significance of that information as you please, to me that looks like confidence is returning to the market and accumulation is evident. A lower-low under $100 is highly unlikely.
We have fallen below the 50, 100, 200 close MA's. First we are looking to find our first good bounce. Which should be soon, since many key indicators such as the , and OBV are looking to bottom out sometime soon, it does not mean Litecoin is done falling. Understand we are due for a few green candles before we get down to our desired buy zones. Pay close attention to the 'Significant support levels' to know where the next momentous bounce is likely to be.
Assuming that Bitcoin does not go below the 8K strong support (Likely):
Litecoin 'Target Buy Zone' - $175-140
This range would only occur if Bitcoin has broken below the 8K strong support (Unlikely):
Litecoin 'Secondary Target Buy Zone' - $140-100
Personally, I have buy limit orders much closer to $140. Though it may take a bit longer to hit.
This may be one of the last opportunities to buy into Litecoin at these levels!
2019 Litecoin ATH projections are ranging from $500-1000
I know this graph may look a bit messy, but it's more of a Litecoin market overview layout. This information and analysis is to be used for educational purposes and is not investment advice. It is simply a trade idea. If you enjoy this TA be sure to leave a like. Trade safely everyone!
Will LTC continue to fall? The answer is still yes, in the mid-term. In the near short-term this current wave downwards is almost over. The 4-Hour candles along with many indicators show plenty of support around the $130 level for LTC and just below 8K for BTC. Meaning that these current low prices won't stick around for much longer, for this downwards wave.
Although plenty of support is showing a bullish turn-around soon the market is still very sensative. Meaning any significant negative or positive news will have a greater affect.
Have a great day everyone!