Hi friends! Welcome to this update analysis on Litecoin! Looking at the four hour chart, we can see that LTC completed the head and shoulders pattern yesterday. However, instead of breaking down, we saw a rally off of the neckline. LTC is now running into resistance again at the rising pink trendline. I said this in the BTC analysis, and I will say it here. If LTC was going to rally higher, to make another run at the top of the downtrend channel, we should have seen a hold of this rising pink trendline. Instead, we broke down from it, and continue to show weakness. Currently, we are essentially confirming that level as resistance. If LTC doesn't rally above the pink trendline, and then above the 50 EMA, it is extremely likely that we will fall from here.
In terms of downside, I expect a test of the black trendline at a minimum, somewhere around 28.50. If the black trendline is lost, we have lateral support in the 27 area. Below there we will see a double bottom test around 22 and change. If double bottom fails to hold, we're probably going to fall to the bottom of the channel, somewhere around 10 dollars. I'm not calling for 10 dollars, I'm just explaining the critical support levels and what lies beneath them.
In summary, the continued failures and weakness is undeniable. Unless some major changes begin to develop, severe downside is almost a certainty.
Be smart. Be nimble. Good luck trading everyone!
I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic! Au revoir.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
Amazing to see the initial inverse H&S (which bolstered the move to $40), is now being shut down by the same pattern but in the opposite direction. Who says H&S is outdated??? gotta love the old school TA.
Thanks for sharing.
mezase
⋅
There's no reason why anyone would buy into LTC, or BTC for that matter honestly.
Blasphemachine
⋅
@mezase, Less than 10 years ago 10,000 bitcoin would buy you a pizza... Today 10 bitcoin will buy you a new car...
mezase
⋅
@blorgalakt, Did you buy while a pizza was worth 10,000 BTC? Those who did are still taking profit and actually buying those cars lol
Blasphemachine
⋅
@mezase, The reason someone would buy into LTC or BTC is as an investment. Thats the point I was making. I can understand why those who bought during the buzz last year would see no reason to buy into it. The bigger picture is that if you buy it during a downturn in the markets like right now you're odds of being down in a few years from now are pretty darn slim.
mezase
⋅
@blorgalakt, Sure they're lower but things can keep on falling 50% indefinitely because there's really nothing you can do with a bitcoin or any other crypto at the moment and honestly there might never be a time where it's really useful, so suddenly your 10k "investment" is worth $500 and you won't throw more money in cause you've already wasted 10k. Crypto is not a safe investment unless there's a couple higher highs/lows on the daily.
Regera
⋅
CaptainQuickWit
⋅
Litecoin is going to plummet. But not because there is an imaginary H&S but because the crypto bubble is still bursting.
mbc47
⋅
MPC, update plz!
LTC has certainly made a move worth discussing.
ReallyMe
⋅
I like the fact that LTC/BTC hat bottomed out. It speaks for LTC.
Thanks for sharing.