We've seen LTC led the market to a 13 week long rally which resulted to subsequent altcoin rallies, most notable among them were DLT and ENJ. I'm still bullish on LTC considering that a significant reduction of supply through reward halvening will occur in next few months but I believe it needs to undergo price correction before resuming the current trend. The 5 waves we had seen on LTC during its rally are mere intermediate waves of a larger 5 wave bullish cycle for LTC, which means we have concluded wave 1 and about to start the corrective wave 2.
The bearish analysis is supported by the following observations on LTC price moves we saw in the 1D chart:
1) We started to see a volume decrease on subsequent rallies after February 8 bullish candle.
2) A failure swing high showed up on the 1D chart. The price made a higher high but failed in the RSI.
3) We are seeing several high-volume (large effort) but narrow-range price bars after a 13 week-long substantial rally, with the price failing to make a new high (little or no result), which suggests that big interests are unloading shares in anticipation of a change in trend.
I drew two blue lines in the chart which are trendlines that we think will likely act as a support. I'm expecting price bounce will happen at these areas but it will eventually fail as a support.
Downside targets are on fib levels with confluence to horizontal support lines. I will be expecting a bounce on one of these fib levels as well. I will be updating the chart as price action approaches at these levels. The most likely bounce area is the .786 fib level IMO. That's it friends.
Share you thoughts with me in the comment section. Thanks
This is just a guide, not a trading advise.
Hit like and follow for more chart updates!
Thanks
-Your Poop Trader
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The first trouble area for this analysis is the first blue line, it will likely bounce at that area. IF it bounce hard from there, a bearish pattern will form which is falling wedge.
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*rising wedge
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LTC forms a horn top. Horn tops are rare pattern, and has a low failure rate with a decent decline. After the downward price trend ends, the rebound is unexciting which has a 47% recovery rate.
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Update on 2 Horn Tops Pattern, almost complete.
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LTC price breaks below support. If it closes below, Double Horn is confirmed. Halving of price initiated.
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Interesting break below the support and a short squeeze. low volume.
Thanks for the heads up! Was already looking at shorting LTC, but a bearish divergence on both the 4H and Daily timeframe show that it has topped, as I had expected. The resistance is too strong for now, not only for LTC but also for BTC and the markets that follow.
got stopped out at entry, is this move a short squeeze or a rally continuation? If we consider a change in the whole crypto market structure, then longing pullbacks seems less risky than selling rallies...
jbutler7
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Yes but look at this and tell me what you think....