Good evening traders, I've been bringing you the popular LTC charts, but seeing as LTC is so tied to the hip to BTC this is my attempt to warn as many people as possible about the upcoming BTC trouble.
First up you can see the monthly RSI for the monthly chart that shows we're in extreme overbought area, in the left of the chart you'll see the previous RSI levels and the subsequent retracements afterwards. Additionally, in the updated idea comment you will see a link to my chart that shows we have VFI divergence on BTC, to learn more about VFI, feel free to google "Volume flow indicator" to find out the significance. Additionally, the most powerful indicator you can trade off in any market is divergence, and we're currently seeing that on the 4 hour and daily charts, you combine this with the monthly RSI and the previous results, as well as the bearish BTC setup, we're in for a *very* serious correction. Please view the boxed areas and look at the related RSI.
Key Notes:
I do not claim to know when this will happen, however, I am confident it will happen. Because this is such a high interval chart, this could happen tomorrow, in a week, or a month, but with these powerful indicators, it looks almost as if it's a certainty.
Right now, it's more important than ever to see BTC's past, and look at how it behaved when in similar situations, I do not wish to create FUD, but I do wish to help some people out who may have not noticed this yet.
All comments are welcome, and I wish the very best to everyone.
Trade safely, and be careful.
Comment
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We now also have a daily candle close below the 50 day EMA that's been acting as support over the past week.
What is this chart? Its growth is not linear, you should use log chart if you want to make a serious comparison.
This chart is more like trying to find a friend of yours on Earth while you are watching from the Moon. You know that he is at the UK, but not exactly where.
ant187
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@Acel, Oh I agree, as I've mentioned multiple times, I wouldn't dare put a time frame on when this could happen as that would be foolish. I do believe however that BTC is the most vulnerable it's been in a very long time, and anything could send this spiraling out of control.
This chart is definitely not meant to trade off of day to day, it's worthless, as you pointed out in that regard.
I feel it is useful however, to point out exactly where we currently are on the larger time frame, and in my opinion, that we could have a serious breakdown at any given point.
@Acel, Lol, I'm one of the biggest believers in BTC Acel, and I have no doubt it'll reach new high's this year.
To ignore blatant signals however is foolish, and before we reach those new highs, we will have bigger lows. Regardless, when there is confirmation either up or down, I'm buying back in. I just don't think we're done correcting yet.
Acel
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@ant187, yes i agree. Although i would suggest you reconsider when buying, this week might be your last chance of a discount. :)
Good luck!
ant187
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@Acel, Thank you sir, I appreciate your criticism, and understand it, comments like yours help me become a better trader.
I wish you the very best in your trading as well.
Rotox
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Hi, I think you are generally right, but it may be over a longer span of time than you are thinking based on past BTC bubble phases. However, sometimes it's completely wrong to use patterns in the past to determine future behavior, but to date in this bull market to my eyes at least this does appear to be playing out on a larger time scale.
Here's a very basic analysis using time, the multiplier between the last bubble and the current one is time x 2.4:
Another key question in all of this is how LTC will perform against BTC, the .02 resistance is substantial but were a major BTC correction to happen in a way that LTC doesn't follow as fast, or if anything else were to happen, LTC breaking clear of .02 might be momentous. But who knows, it's all speculation and based on all charts I've seen, to me it seems like a good time to take profits and have some cash on hand for any buying opportunities a downward market might present.
ant187
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@Rotox, Good morning! Thank you for the intelligent comment. I absolutely agree in the fact we may see a long term downward pressure, in my original chart, every one of those candles represents one month, so the breakdowns didn't happen over night, they were slow bleeds. My main concern is with all the new money in the game, at some point when the price breaks below a threshhold, we will see a serious flash crash. It could be anything, right now the market is so vulnerable that it just needs a catalyst to send it spiraling down. I don't think that a pro longed downward trend is the healthiest thing for the crypto market right now, but who knows. Regardless, I believe we'll continue to see lower highs and lower lows until we reach a tipping point, and as you acutely pointed out, it could take a while, or it could happen instantly. All it takes at this point is a spark, and the whole thing will go up in flames.
I'm not going to be playing in a market like that right now.
so that there would be a dip is normall. What we are seeing now is exactly the same as we saw in previous corrections. What is the bottom you have in mind?
This chart is more like trying to find a friend of yours on Earth while you are watching from the Moon. You know that he is at the UK, but not exactly where.