The Bears Watch, As Litecoin Continues To Show Weakness! (LTC)
Hi friends! Welcome to this update analysis for Litecoin! Looking at the four hour chart, we can see that LTC continues to print critical failure after critical failure. Starting with the daily 50 EMA (in orange) we can see that price failed to get above it on multiple occasions. When we did get above the daily 50 EMA, we never held it continuously to confirm it as support. So, naturally, price is setting up for an apparent return to the downside.
We can see that there is a large head and shoulders formation on the chart, which was printed after the inverted head and shoulders from late December failed to maintain a breakout. This head and shoulders formation has not broken down yet, but it is very close to completing the right shoulder. If we break down from there, we can see that there is a support level just below the neckline which could hold the market. That support level was held on December 27th, and it appears as though we are about to return to it. However, if LTC breaks down below that support level, I think we will be looking at a potential test of double bottom, or something close to double bottom. Double bottom is at 22.17. So, if we begin to accelerate to the downside, we could see a retest of that level.
Overall, the market is showing continuous weakness, and it appears more likely that we will see a fall into the low 20's before we see another attempt to rally to the top of the downtrend channel (in blue.)
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.***
-JD-
We can see that there is a large head and shoulders formation on the chart, which was printed after the inverted head and shoulders from late December failed to maintain a breakout. This head and shoulders formation has not broken down yet, but it is very close to completing the right shoulder. If we break down from there, we can see that there is a support level just below the neckline which could hold the market. That support level was held on December 27th, and it appears as though we are about to return to it. However, if LTC breaks down below that support level, I think we will be looking at a potential test of double bottom, or something close to double bottom. Double bottom is at 22.17. So, if we begin to accelerate to the downside, we could see a retest of that level.
Overall, the market is showing continuous weakness, and it appears more likely that we will see a fall into the low 20's before we see another attempt to rally to the top of the downtrend channel (in blue.)
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.***
-JD-
Comment:
A zoomed out view of the downtrend channel.
