Why did the rally stop after breakout of inverted h&s?
Hi guys, I am just giving you a quick analysis on LTC as many are still wondering why the rally stopped after breakout of inverted head and shoulders. The reason is simple - both weekly 200MA resistance & structure resistance are acting as significant resistance.
If you have read my recent TAs on Bitcoin I have mentioned a couple of times that the weekly 200MA is a significant support. In fact, Bitcoin has found support at weekly 200MA at $3150 a couple of weeks ago and since then rallied 30% . However, if you have a look of the chart above you can see LTC is currently trading BELOW the weekly 200MA. And the past few daily candles have confirmed it as significant resistance.
But, does this mean the bears have taken back the control over the market? I doubt it. There are just as many support levels below as resistance levels above (albeit the main trend is still bearish ). If you look closely, LTC is currently holding at 0.382 from the recent low to recent high. Not only that, LTC is also at the bottom of the uptrend channel & neckline of the inverted head and shoulders. It would be unwise to short at this level of support, without a solid reason.
I have been giving out a long term target of <$4.4k for Bitcoin back in April 2018 and have been giving out a short-mid term buy signals since May. From memory all of those buy signals on Bitcoin were winning trades. Rarely have I been providing both a bullish and bearish scenarios because any trader can do that. However, while Bitcoin is bouncing between weekly EMA200 & MA200 (if you are not sure what I am referring to, read my TA on Bitcoin below) it is just not easy to tell which direction Bitcoin will go. Currently I am waiting to see if one of my 2 bullish scenarios on Bitcoin could play out as Bitcoin determines the overall market movement.
To sum up, if LTC can hold support around $34 you simply want to focus on buy. But if LTC failed to hold support, wait for LTC to drop to around $25-27 or wait for Bitcoin to tell us which direction it is more likely to go.
If you would like me to give you more frequent updates or TA on other coins/market, please leave a like or leave a comment in the comment section below. I spend on average 2-3 hours per each TA so it would be good to see people's response as well as the likes. I believe that's not too much to ask for?
Taiwan Bear
***This post is for educational purpose. Not a recommendation to buy/sell***
If you have read my recent TAs on Bitcoin I have mentioned a couple of times that the weekly 200MA is a significant support. In fact, Bitcoin has found support at weekly 200MA at $3150 a couple of weeks ago and since then rallied 30% . However, if you have a look of the chart above you can see LTC is currently trading BELOW the weekly 200MA. And the past few daily candles have confirmed it as significant resistance.
But, does this mean the bears have taken back the control over the market? I doubt it. There are just as many support levels below as resistance levels above (albeit the main trend is still bearish ). If you look closely, LTC is currently holding at 0.382 from the recent low to recent high. Not only that, LTC is also at the bottom of the uptrend channel & neckline of the inverted head and shoulders. It would be unwise to short at this level of support, without a solid reason.
I have been giving out a long term target of <$4.4k for Bitcoin back in April 2018 and have been giving out a short-mid term buy signals since May. From memory all of those buy signals on Bitcoin were winning trades. Rarely have I been providing both a bullish and bearish scenarios because any trader can do that. However, while Bitcoin is bouncing between weekly EMA200 & MA200 (if you are not sure what I am referring to, read my TA on Bitcoin below) it is just not easy to tell which direction Bitcoin will go. Currently I am waiting to see if one of my 2 bullish scenarios on Bitcoin could play out as Bitcoin determines the overall market movement.
To sum up, if LTC can hold support around $34 you simply want to focus on buy. But if LTC failed to hold support, wait for LTC to drop to around $25-27 or wait for Bitcoin to tell us which direction it is more likely to go.
If you would like me to give you more frequent updates or TA on other coins/market, please leave a like or leave a comment in the comment section below. I spend on average 2-3 hours per each TA so it would be good to see people's response as well as the likes. I believe that's not too much to ask for?
Taiwan Bear
***This post is for educational purpose. Not a recommendation to buy/sell***
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I am not in any position on LTC at the moment. BTC is leading the market. Follow my updates on BTC.
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