Hi friends! Let's take a look at Litecoin! Looking at the four hour chart, we can see that Litecoin is making an attempt to put in a bottom, as it rallies off of today's lows. Notice how LTC is approaching the ever important "Critical Support" (which is now overhead resistance) level, at $200. What happens here, is most likely going to determine whether LTC has bottomed or not. If LTC can have a sustained breakout above the $200 level, that would be a nice indication of further upside potential. However, (and this is very important) a failure at $200, will be a sign that we have only rallied back up to define that "critical" level as newly confirmed overhead resistance. LTC is testing $200 as we speak. If it fails to break above, things could get really ugly. On the downside, LTC could find support at the pink trendline
or the 78.6% retracement
level. If LTC manages to break above $200, there are several other resistance levels that it would have to immediately contend with. You have the top of the bear flag
, the top of the falling parallel channel
, the 50 EMA
(in orange,) the 200 EMA
(in purple,) and the 50% retrace. In other words, going higher is now much more difficult than going lower. So until LTC breaks above some of those overhead resistance levels, the bias is still to the downside. I'll keep you posted, as things unfold.
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. I'm out!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
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