As you can see, LTC appears to be forming a nice , which (when coupled with the consolidation in the on 7th and 8th) could also be forming the right shoulder of an pattern. The only problem that I see with this thesis, is that Bitcoin has created another , while LTC printed a . Furthermore, BTC has already started to break down from it's newly formed , but the downside appears to be catching immediate support on the pink ( BTC chart.)
As I'm writing this, BTC is printing a more severe breakdown from it's , and the potential on this chart, is really pushing into the bottom of the flag, so we may see a breakdown here. Regardless, this is still a , until it fails and breaks down. Given the current look on BTC , I'm starting to think that this could fail, but what I "think" is irrelevant. I read the charts, and this chart currently says .
You can see that resistance is falling into the , in the form of the 20 (in blue) and then the 50 (in orange.) The 50 is also converging with the 61.8% retrace, so that level could be particularly resistive, if LTC makes it's way up there. On the , we're working over a crossover, but the momentum is beginning to flatten, as the shrinks, which is typical to see during flag consolidations.
Overall, we're in a , that has immediate resistance overhead, while Bitcoin is in the process of breaking down from a , with support just below. In LTC, we need to watch this flag, and wait for the breakout, to determine real guidance on the forward price action. The downside target was not reached, so if this flag breaks to the downside, the 137.50 handle could be the final stop. A breakout to the upside, combined with a break above the 618, would put a retest of the 227.60 level in play.
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***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-Magic loves you-
this makes a lot of sense to me right now, but we'll see...
You're waiting for it to go lower so you can buy because you're too scared to short it. It then goes lower, but now your emotions kick in, now you're too scared to buy at this lower price because you think you're seeing signals that it can go even lower (bear raid/market). So you don't pull the trigger. You wake up the next morning and... damn!... it's up 11%, and you missed out!
That should be the end of it right? ... you're gonna wait for a pull back right?... wrong!
Many of you not only have Buyers Paralysis, you also suffer from FOMOitis. You rush to buy into this 11% pop, why?... because you're dumb like that!!
So, as soon as you place the market order, guess what happens? that's right it immediately sells down into a blow off top, right dead smack into that candle you bought. That's right... it appears you bought the top for the day. 11% becomes 6% becomes 3%, until that candle is now red, the ole' Shooting Star candle is now -2%. You're at a loss and now there's that other anxious feeling coming over you. It's that feeling of a losing position, after all who want's to lose money right?... so you sell at a loss -3%, you say to yourself, "heck my stop loss would have done the same thing, ...so what the heck". Well, you HOPE your stop loss would have saved you, as these notorious unregulated exchanges are making a killing on non remedy Slippage. Nevertheless you loss Bitcoin or cash.
...ha?, Uh oh... Wait a minute!!!... WTF!!!... it's going up again. What the hell man!!... it's like the f'king exchange knows me!!...
That's right. that candle just got bought up, and recovered by a liquidity bot.
The fact is, the exchange does know you, well, not in the personal sense, it knows that you're a FOMO'er in the order book, it's designed to know this. You're to naive to realize that the majority of the buys/sells and volume you see are being performed by liquidity bots, but that's another lesson for a different day. The point is... YOU ALLOWED YOURSELF to be manipulated right out of your Bitcoin.