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.***
-MPC loves you-
-JD-
評論
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Update: Litecoin is now above the critical resistance level. Now, we will need to watch to see if it holds. -Magic-
@afreet77, It is a mythical beast, this crypto space.
mike21ap
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Thanks for your thoughts. Key question though is whether the correction is over and we are about to enter a consolidation period following a small recovery run. Or whether this is effectively a bull trap and we are about to go down for more. Can't complain as I have done well having built small positions during the crash and have now closed with significant profit (thats just my trading strategy)... but curious to hear your thoughts. I should add, to avoid confusion, I did not build my positions in LTC, I am not sure of the fundamentals of this coin - seems to be affected by negative outlook of the general crypto "public".
severett99
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Looks like BTC and LTC giving in to Resistance
jamesaphoenix
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@severett99, cashed out 8% just in case to buy the next dip if it happens :D
severett99
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@jamesaphoenix, big support at 10900. Look at buy orders pending on Bitfinex
severett99
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@severett99, meaning support for BTC = support for LTC