Earlier today (25 JAN 2014), we offered the possibility of a rally to occur up to, but limited by, the underbelly of the recent bullish trendline. Turns out that this very scenario just played out perfectly, and bears appear now ready to start digging.
A structure low at 0.024 will probably offer a soft support compared to 0.022 and especially 0.024 levels. While it may not be a straight path down to the bear cave, bulls will likely cede to what appears to be a strong bearish market conversion confirmation.
OVERALL: Bears have the upper paw at this point, and there is very little bullish quality left in the chart to suppose a bullish counter-scenario could occur given the technical profile. One caveat is that bulls could use the underbelly of the rising trendline as a backstop and push price a little higher, but expect a very limited gain as our forecast favors a bearish dominance at this point.
Cheers,
David Alcindor | 4xQuad.com
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Comments
4xForecaster
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LTCBTC Traders:
The chart posted a bearish reversal confirmation. The targets posted back on January 25th remain valid and intact. Unless our signal reverts from a Bullish Confirmed to a Neutral, expect price to decline to the 0.022 levels defined. The 0.020 has become less probable. Major structure to overcome at this point is the low defined at 0.024. Expect a shallow 0.382 retracement from that level. If a third attempt at 0.024 is made without 38.2 reversal, it would confirm added internal bearish strength and added support to our forecast - David
BuyOnPurple
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Looks like we're finally breaching the lower end of that .0265ish consolidation channel (50% retracement from .029 to .024, no?). Might be a great time for an update friend :)
UnknownUnicorn59736
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The LTC BTC pair is perhaps my favourite trade. I like to think of it as 'the trade' for the crypto faithful, as there is little to no chance of being left behind during crypto's many major uptrends. I truly appreciate the accurate attention you give it David.
4xForecaster
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Hey, thank you @emanance!
flibbr
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If your goal is to gain BTC... and LTC/BTC continually falls .. I don't see how anyone can like this as a trading pair. It must be an 'in out' trade imo, not one for holding long term
4xForecaster
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Hi, @flibbr - This is a relative strength chart, so both LTCUSD and BTCUSD can rise. Only if BTCUSD rises with greater strength would the LTCBTC show a decline in the relative strength - David
BuyOnPurple
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I've never traded it long term, I'm only truly considering it if we really do hit those lower levels -- but only because I expect an aggressive bounce pattern. I will, however, say that I made more on LTC/BTC pairs at smaller exchanges between christmas and the first week of january (buy at .029, sell at .032, all day) than I've made on the rest of my trades combined. I've also been personally loaned LTC for trading that I fully intend to pay back in the form of LTC -- which is why I sold my remaining LTC at .029 and have been eagerly watching this chart ever since.
It's not a pair that should be relied upon, but it's absolutely capable of putting a trader in an extremely advantageous long position where both LTC and BTC are rising, and they've bought at the bottom of the LTC/BTC pair -- kind of like the junction we're slamming head first into ;)
uplasenko
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I am noob in this trading but it seems to me ( sadly,because i sold at 20 $) this is going up...I am not buying any coins though , because as noobish as i could be I swore that i will never buy at higher price than i sold and never sell at lover price than i bought.That is the only way not to loose anything at least for me.But anyway it doesnt seem that bears have upper paw at all.
The chart posted a bearish reversal confirmation. The targets posted back on January 25th remain valid and intact. Unless our signal reverts from a Bullish Confirmed to a Neutral, expect price to decline to the 0.022 levels defined. The 0.020 has become less probable. Major structure to overcome at this point is the low defined at 0.024. Expect a shallow 0.382 retracement from that level. If a third attempt at 0.024 is made without 38.2 reversal, it would confirm added internal bearish strength and added support to our forecast - David