Hi friends! Welcome to this update analysis on Litecoin! Let's jump right in. As you can see, LTC rallied to the top of the channel, but was stopped cold there. Since then, LTC has turned lower, formed a small bear flag, and has broken down below the 50 EMA (in orange) — the old nemesis. In addition to losing the 50, you can see that LTC is also trading below the 78.6% retrace. If you recall from my last LTC post, I said told you that we needed to keep a close eye on the downtrend channel, because it was do-or-die. By the looks of things, it appears to be "die." Also, I think it's safe to assume that we have not formed a double bottom, at this point. I do still think that the market is trying to bottom out around here, so it is possible that LTC is in the process of forming an inverse head and shoulders pattern, like so many of the other cryptos that I follow. I've drawn the hypothetical right shoulder of this pattern on the chart, to illustrate the possible future development. In addition to being rejected at the top of the channel, and losing the 50 EMA, you can see that we've just crossed over bearish on the MACD, indicating a shift in momentum. However, you can also see that there is a significant bullish divergence that has been building on the MACD, which adds to the market reversal theory. In short, some bullish reversal signs are beginning to emerge, in LTC and across the crypto space. However, it also appears like we may get a final push lower, before we actually see real evidence of a turn in the market. Remember people, THIS IS STILL A BEAR MARKET. We are still in a bear market downtrend, and we just saw a reversal at the top of the downtrend channel. If we can't get above the downtrend channel, LTC will fall indefinitely. Obviously, I don't necessarily think that will happen. I'm just emphasizing the importance of climbing out of the falling blue tunnel of death.
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-
评论
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FYI, I have adjusted the top of the channel, to where it doesn’t intersect with the high made on Jan 6th. The top of the channel should now make contact with that high.
Doesn’t LTC really just depend on the correlation with BTC as to whether it’s do or die. Bitcoin pretty much makes the decisions in the family....but for how long?
trishpiatt
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@Bremily01, I think that is starting to change, recently BTC went on to create two lower lows while LTC created a higher a higher high.. Also, On Gdax LTC broke the downtrend and looks like it is testing the top of the channel as support right now. interesting how much of a difference we are having between exchanges.
MCassICT
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@trishpiatt, Ill have to keep an eye for that. I know occasionally I have seen a few breaks in correlation but rare when BTC is going down.
theTrueBoL1
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@Bremily01, ltc now is over 0.018 btc. Look at ltc/btc chart, a huge head and shoulder pattern has been closed. After that ltc spiked to 350 dollars. ltc is cheaper and faster than btc
MikeRQG
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thanks magicpoop. Your posts are the first thing I read when I get up in the morning.
cmschlch
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@rungan1978, true words! :-)
RamzaBehoulve
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In the process of breaking out of the tunnel of death...
bitb0y
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another brilliant mention the obvious post by mr.poops. any analyst worth his salt could've told you that this wasn't the bullish run you've been moaning about. if it break 175 blah blah ... lol
MagicPoopCannon
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@bitb0y, A double bottom or an inverse head and shoulders pattern will produce the same bullish outcome.
kinleroux
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Litepay launches this month, maybe it's just the push litecoin needs. It does seem that they also wait for a more bullish trend before the big launch.