Hi friends! Welcome to this update analysis on Litecoin! Well, as you can see, yesterday's formation was NOT a bear flag, and we seem to be putting in a V bottom. Looking at the MACD, we can see that a bullish crossover has occurred, and buy-side volume begins to light up the chart, as the bulls try to form a bottom in the bear market. If you recall from yesterday's post, we were actually trading below the $124 support level, and there wasn't a bullish crossover on the MACD. As I said in yesterday's post, I did buy near the low, at $108.50. I think there is a decent chance, that the bottom could be in. However, there is one major thing that I need to see, to feel very confident about that statement, and put more bullish money to work. I want to see LTC break out above the downtrend channel, and particularly, I want to see it get above the "Heavy Resistance" level at the 618. Just above the current price action, is the 50 EMA (in orange.) It has been very resistive thus far, so it will be important to see how LTC responds to the 50 EMA, after this bottoming attempt. If we surpass the 50, it would be an indication that the bulls have some real momentum. Ultimately, the bears maintain control, until the downtrend channel is surpassed, and LTC begins to form higher highs.
Recently, I've been seeing some feedback in my comment sections, from people who are questioning my bullish post in LTC, while still having bearish targets in LTC and others. People were saying that it didn't make sense, and that it was stupid and so forth.
Well, here is my reasoning, which I've made very clear in all of my analyses. As I've stated, the targets that I produced on my charts, which were derived from measurements of structures, would only be reached if the respective structures retraced to 100% of their corrective potential. As you can see, LTC reach the target. However, BTC, ETH, XRP and others, did not. I've always said, that bearish structures don't always retrace to 100% of their potential. That is common knowledge in technical analysis. Likewise, bullish structures don't always break out to 100% of the breakout potential. Sometimes they do, and they go even farther. The point is, with each chart, I was simply trying to illustrate the maximum downside potential, based on the structures created on the chart. If the market reverses as a whole, and some targets are met, but other targets aren't, who cares? The market has reversed! The current bounce is nice, and it could definitely be a bottom in the bear market. Or, it could be a dead cat bounce, before this market swallows the bulls like chunks of chicken soup. Personally, I'm long, but with very tight stops. As I'm writing this, LTC is beginning to test the 50. Let's see what it does.
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.***
@MagicPoopCannon "YOU" are clearly a "MASTER" of TA. Your generosity in sharing your knowledge is greatly appreciated. You deserve a Hero's welcome with floats, fireworks, conffetti and streamers. IF I were an American citizen and YOU were to run for the Presidency ... YOU would have my vote. In all seriousness. ... THANK YOU
MagicPoopCannon
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@GolfLife, Haha Thank you for the amazing kindness. It is a pleasure to be at your service.
-Magic-
Regera
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"I was simply trying to illustrate maximum downside potential." What a load of crap. You issued emergency warnings for both BTC and LTC and not only were you wrong, you were as wrong as could be. Where was the update when it broke above the downtrend channel? Oh wait, you were too busy stroking yourself as you gazed in the mirror.
@MagicPoopCannon, Yea, next time could you simply be right all the time. You're so inconsiderate when you're wrong.
jjoshjj
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@Regera, i can understand your frustration but if anyone could predict exactly what will happen then we all could.
I think the warning post was a bit extreme, but being a small fish i follow the trend. Happy to loose a few to feel comfortable when I jump in.
ovsiy2012
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@Regera, man, he just sharing his ideas based on his knowledge. write your ideas if you believe it would be helpful! We are not to judge here! If you don't like it, just skip it. go on your own!
MagicPoopCannon
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@Regera, You say that I was wrong, but flag patterns have false breakouts on a regular basis, before ultimately returning in the direction intended by the flag. So be careful with your words, they might come back to bite you.
-Magic-
Regera
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@MagicPoopCannon, How cute. You're like the boy who cried wolf. Look, this is TA. No one gets it right 100% of the time. But be a man and own the position you take. Newsflash, there is always downside risk. Does every headline begin with "Warning! Warning! Warning!" because it might go down? You had it right with your LTC is slightly bullish idea. Then you followed it up with warnings of breaking downtrend channels. You can't cry wolf when there wasn't even a retest of $120 after you issued the warning and if you knew the threat had passed then it's irresponsible of you not to post an update saying so... and that's my point: it is apparent that you'd rather act and feel right than do the right thing. I'm not mad, I find you amusing. But there are those who lick the poop off your canon and take your overconfidence in your ideas as gospel and you left them twisting in the wind. Nice schtick and congrats on a million views.
mhopper321
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@Regera, Would you rather him be wrong the other way and tell you all to BUY BUY BUY when the downtrend has any little bounce wildly optimistic in a clear as day down downtrend? I assume you do your own TA and I'd be curious to see that. I check with MagicPoopCannons charts to confirm my own just for perspective but every limit he has set was similar to mine within a couple dollars. Nobody is right 100% of the time. Hell in this game if you are right 60+% of the time there's a lot of money to be made. I personally have a lot of respect for this person because they were making the right calls all the way down when tons of others I see on here were wrongly telling people to buy at every single turn costing a ton of people a ton of money. None of these people sharing their TA are getting paid to my knowledge so if you don;t like it close out and move on. Learn to do TA yourself and trust nobody thats my philosophy.