The Litecoin Downtrend is Still Intact, Here's Why! (LTC) >=D
Hi friends! Welcome to this update analysis on Litecoin! Let's get right to it! Looking at the four hour chart, you can see that LTC dropped like a rock from my third bear flag, just as anticipated, and bounced perfectly off of my red trendline support. I'm sure many of you have seen the parade of haters in my comment sections, as they prematurely chastise me because my "downside target" has not yet been reached. They've called me every name under the sun, they've slandered me, and they've wrongfully ridiculed my analyses — all while each call that I have made has come to fruition with precision! The bear flags all broke down when I said they would, and the market continues it's decline. So, let's break LTC down, and see why that the bottom may not be in yet.
As I just mentioned, LTC rallied sharply off of my red trendline support. However, not a single candle was able to close above the 20 EMA (in blue.) In fact, the past two candles both printed heavy distribution (selling) around the 20 EMA. So, it's clear that the sellers are still ready to take shorts at the sight of any rallies into that level. Furthermore, all we've done is post another lower low, as well as a lower high, assuming that the previous candle isn't surpassed. Currently, there is no technical evidence that this downtrend has reversed. Sure, there was some decent buy volume on the rally candle, but that isn't enough to negate the obvious downtrend that we are in. Obviously, that could change. Particularly if we see a bull flag form here, or if we surpass the 20 and the 50 EMAs, but that evidence is currently nonexistent. So, anyone who is saying that the bottom is in, isn't basing that statement on any substantial technical data.
On the MACD, you can see that a bullish divergence has occurred, so we will have to pay close attention to the current price action. If LTC begins to break above the 20 EMA, and particularly the high from the previous candle, then there very well may be more upside to come. Even if we do break above there, the 50 EMA (in orange) will be ready to provide substantial resistance, and a reversal there would still print a lower high. There is a lot of worth that needs to be done, before the bulls do their victory dance.
This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, like, and share on social media. Good luck trading everyone!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-Magic loves you-
-JD-
As I just mentioned, LTC rallied sharply off of my red trendline support. However, not a single candle was able to close above the 20 EMA (in blue.) In fact, the past two candles both printed heavy distribution (selling) around the 20 EMA. So, it's clear that the sellers are still ready to take shorts at the sight of any rallies into that level. Furthermore, all we've done is post another lower low, as well as a lower high, assuming that the previous candle isn't surpassed. Currently, there is no technical evidence that this downtrend has reversed. Sure, there was some decent buy volume on the rally candle, but that isn't enough to negate the obvious downtrend that we are in. Obviously, that could change. Particularly if we see a bull flag form here, or if we surpass the 20 and the 50 EMAs, but that evidence is currently nonexistent. So, anyone who is saying that the bottom is in, isn't basing that statement on any substantial technical data.
On the MACD, you can see that a bullish divergence has occurred, so we will have to pay close attention to the current price action. If LTC begins to break above the 20 EMA, and particularly the high from the previous candle, then there very well may be more upside to come. Even if we do break above there, the 50 EMA (in orange) will be ready to provide substantial resistance, and a reversal there would still print a lower high. There is a lot of worth that needs to be done, before the bulls do their victory dance.
This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, like, and share on social media. Good luck trading everyone!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-Magic loves you-
-JD-