Hey guys! This is a continuation of my first post on Litecoin, however I have made a few technical changes.
Basically, I have seen a change in the downtrend channel and I am now going to treat this as a large falling wedge, usually a nice bullish reversal formation.
Now, looking at the 4hr chart: We are in a Falling Wedge (solid blue trend lines)
Man did LTC bulls get CRUSHED by the bears at the top of the falling wedge. Now, the trading area has been at the 50 day EMA and has been extremely reactionary both ways. The trading around the 50 day EMA, coupled with the fall from the top of the falling wedge has formed a nasty bear flag formation. This is not a good sign for LTC, as it has happened right around the major resistance levels are converging on one another.
With all that being said, I believe the bulls push is coming to an end FOR NOW. Volume has collapsed, and we have had a bearish crossover on the MACD. And the only movement up, is straight into the major resistance that keeps knocking LTC back down.
I am looking at the Minor Support level and the Major Support level, as the next important areas SHOULD the bear flag break to the downside.
My bullish heart says that IF LTC can stay above the 50 day EMA and challenge the top of the bear flag, which is pretty much the top of the falling wedge as well, we could see a very strong breakout. But remember, the bears have control, and there is SO MUCH resistance immediately above LTC right now.
Overall, the Cryptomarket, as a whole, is showing many more bullish signals. This is a great and I do believe we will have a bullish reversal of this market in a relatively short amount of time, however, I do not believe the bears are done just yet.
As always, this situation needs to be monitored carefully.
Thanks guys, I will update as things evolve!
Basically, I have seen a change in the downtrend channel and I am now going to treat this as a large falling wedge, usually a nice bullish reversal formation.
Now, looking at the 4hr chart: We are in a Falling Wedge (solid blue trend lines)
Man did LTC bulls get CRUSHED by the bears at the top of the falling wedge. Now, the trading area has been at the 50 day EMA and has been extremely reactionary both ways. The trading around the 50 day EMA, coupled with the fall from the top of the falling wedge has formed a nasty bear flag formation. This is not a good sign for LTC, as it has happened right around the major resistance levels are converging on one another.
With all that being said, I believe the bulls push is coming to an end FOR NOW. Volume has collapsed, and we have had a bearish crossover on the MACD. And the only movement up, is straight into the major resistance that keeps knocking LTC back down.
I am looking at the Minor Support level and the Major Support level, as the next important areas SHOULD the bear flag break to the downside.
My bullish heart says that IF LTC can stay above the 50 day EMA and challenge the top of the bear flag, which is pretty much the top of the falling wedge as well, we could see a very strong breakout. But remember, the bears have control, and there is SO MUCH resistance immediately above LTC right now.
Overall, the Cryptomarket, as a whole, is showing many more bullish signals. This is a great and I do believe we will have a bullish reversal of this market in a relatively short amount of time, however, I do not believe the bears are done just yet.
As always, this situation needs to be monitored carefully.
Thanks guys, I will update as things evolve!
Komen:
LTC has moved above the 50 day EMA as well as continuing to trade at the top of the bear flag. It has not reached the top of the falling wedge and is trading right on or above it right now. While this is a technical breakout, I recommend extreme caution, as it hasnt convincingly broken above the falling wedge, and is still technically forming a bear flag, however I am leaning towards this analysis being invalid and my support targets not being met. Only time will tell. The next 24 hours will be interesting. I will be posting a new analysis tomorrow based on what happens between now and then! Thanks guys!