Hi friends! This is a quick update on Litecoin! I know a lot of my followers hold LTC, so I want to drop a quick update. You can see that LTC has reversed course, as BTC reversed it's breakout of the inverse head and shoulders pattern. Technically, this movement does not invalidate the inverse head and shoulders pattern on the LTC chart. However, LTC is approaching some important levels of support. You can see that it is currently testing around the 200 EMA (in purple) and it is actually trading below it at the moment. Just below that, is the 61.8% retrace. With that said, it's really important to pay close attention here, especially if you are long. If LTC continues to break down from here, and particularly, if we get below the low on 2/23, there could be some rapid selling that ensues.
On the MACD, you can see that there has been a weak bearish crossover, and the MACD has fallen below the zero line, which is a technical sell signal. However, I wouldn't read into it too much, unless we see a continuation below the 61.8% retrace, and the 181.80 level especially. Looking at the current candle, we appear to be printing a nice little hammer, and price is back above the 200 EMA, so we could find support around here.
If you remember from a few posts ago, I highlighted how the left shoulder, the head, and the right shoulder, all appear to have generally ascending lows. The fact that we may be finding support around here, would keep that rough trend in place. Overall, the inverse head and shoulders pattern is still valid, and in the midst of development. However, keep an eye on the downside risk, in case LTC begins to roll over. On the upside, a confirmation above the 50% retrace, at about 228.15, would be very bullish. 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.***
Appreciate the insight. At the same time, LTCUSD is struggling.
If it heads down toward $180, I expect to see some panic selling (after a quick bounce). So... I'd Be mindful of any Bull traps.
Clearly, the $200 buy wall was a fake out. And without any new positive headlines, I don't think there will be enough buy volume to keep LTC afloat to surge back up to the $230 region (let alone $250). Although I'm bullish mid to long-term, I think the Bears are ready to swat this down in the short term.
That said, the Bulls will likely pick up the pace Sub $180 (more like 150ish). That's where the action will (hopefully) take place, and should provide a worthwhile bounce, IMO.
On the other hand, if that fails, we're going to head downward some more... sub $120. (Certainly a possibility.)
Time will tell.
Snuby3
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big bull flag?
ckim802
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I'm not trying to spam, just an amateur, and horrible at that, trader trying to get your opinion.
Where the lightning is appears to me to be a fulcrum point for either a nautilus shape or inverse mirroring. Does this number seem crucial to you?
Andbcoin
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@ckim802, I keep saying LTac will go down up to $107 and even below $100. Maybe not for a long time, but one or two days. It's happened before and it can still happen.
You just have to think the bull run of December has to go down again.
I think we're still in a correction. If you draw lines from the top of the mountain, you'll see you can draw parallel lines (support and resistance).
Also, take a look at the volume. It's not that high to break the previous downtrend channel.
I can't upload images here, but I think you'll be able to draw them and see what I mean.
If not tripple bottom, under $107.
But it's good news. New opportunities for the future, since you'll buy more LTac with the same amount of money.
I sold all my LTC and I haven't traded even in the dips. Too risky.
ckim802
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@Andbcoin, can't take the heat, get out of the kitchen. It is make or break time for all cryptos. If these critical price points aren't reached soon, you're better off investing in blue-chip tech stocks and leaving the crypto world to pick up the pieces. A downturn won't be just a downturn, it will be the end. Prices will go below where they were during the crash, not in a flash, but in a whimper, over an extended period of time. Do you think you'll have the attention span to sit it out for years potentially? In the meanwhile, the tech would no longer be funded, finished, or extended. No finished product, no revenue - no revenue, no value. Over an extended period of time, patterns no longer form fractals but instead endpoints. I'm all in because if this goes south, investing in this space will no longer be worth it, buy Amazon or Google instead.
Sorry, English is not my mother tongue and I don't get some of your ideas.
I just want to point out that channels are inside bigger ones and there are periods in which cryptos (and other products) go up, and others, down, to go up again.
That said, maybe it touched a big resistance and it's headed to a lower support.
I don't know where ir is because I haven't drawn these lines, but who knows, maybe it takes a year to go down and when the support line is touched, back up again to break the hard resistance.
That said, I don't want people to get scared, that's why I tell my ideas like others do and prevent people from losing a good amount.
It's not the first time a coin loses half it's value or even more.
Remember when LTC went down to $29, ETH to thirty cents, or NEO from $35 to $3 in a night? (29 November).
I remember the last one because I lost $1000 due to a stupid stop loss I set at $10, thinking it wasn't going to happen, but I did it just in case.
If it heads down toward $180, I expect to see some panic selling (after a quick bounce). So... I'd Be mindful of any Bull traps.
Clearly, the $200 buy wall was a fake out. And without any new positive headlines, I don't think there will be enough buy volume to keep LTC afloat to surge back up to the $230 region (let alone $250). Although I'm bullish mid to long-term, I think the Bears are ready to swat this down in the short term.
That said, the Bulls will likely pick up the pace Sub $180 (more like 150ish). That's where the action will (hopefully) take place, and should provide a worthwhile bounce, IMO.
On the other hand, if that fails, we're going to head downward some more... sub $120. (Certainly a possibility.)
Time will tell.