When assessing the cryptocurrency market we need to consider the big divergences we seeing these times and which are increasing constantly, the market isn't like it was one time in 2017 where just everything went volatile in one direction, therefore we are looking at the litecoin which 2-hour timeframe perspective, which is one of the weaker pairs at the moment, while bitcoin or ethereum , for example, have room to move higher the signs spotted in litecoin looking inevitably more then it has more potential to the upside, this is why we should not take the whole market in the same direction and distinguish between the individual coins differently developing these times.
Head And Shoulder Formation:
Looking at my chart you can watch litecoin building this potential head and shoulder formation here marked in orange in my chart, it already completed the left shoulder and the head and now has still resistance lying there coming together with the in blue and the falling resistance line marked in black also the is decreasing which is normally seen and takes up a higher potential to confirm such a formation also, this formation can be a classical reversal top formation as it is often spotted in the past of classical markets, the confirmation below scenario will show up when the complete head and shoulder formation price action closed decisively below the neckline.
The next times we can expect litecoin to test the upper resistance layers anew and when these confirm which can be expected as it will also fit into the forming of the right shoulder we can consider it to be formed. The full confirmation of the head and shoulder formation will happen when litecoin moves below the neckline marked in blue, when this shows up litecoin will increase pressure and activate downside targets. It is important to make the difference between the other coins clear here, as the other have still some room to move higher the resistance layers are strong and nearer with litecoin which is showing a higher potential to show up also on the shorter timeframe perspective.
In this manner, thank you for watching, good day my friends and support for more market insight.
"There is a time to go long, a time to go short, and a time to go fishing."
Information provided is only educational and should not be used to take action in the markets.