Litecoin, Since Bearish Exaggeration, This Formation Forming!

Hi my friends,

Welcome to this analysis where we are looking at Litecoin 2-hour timeframe perspective, the recent events, the current formational structure, what we can expect the next times and how to possibly handle upcoming situations appropriately. Since Litecoin formed this heavily exaggerated bearishness almost in one candle to the downside testing the uptrend line which this extremely strong volume this was just a move which can not be underestimated as it is not seldom seen that after such heavy declines there can follow up more, besides that Litecoin is forming this huge massive decisive formation which needs to be assessed because it will be tremendously important for the further destinies of Litecoins price-action, therefore I detected all the important levels and possible outcomes we should consider in the current situation with Litecoin.

Looking at my chart you can watch that Litecoin is now building this ascending-channel-formation right above the neckline where it is forming a coherent wave-count within this formation already completed the wave A and B, now it is forming the wave C determining into the 100-EMA and the upper boundary as it is marked in my chart from there on Litecoin can move forward to form the wave D and E also where the final wave E will end up in this strong resistance-cluster lying above there marked in my chart in red where several resistance-levels coming together, this cluster will be crucial as it is likely to form a first heavy pullback into the neckline again from where Litecoin needs to show how it will move on further from there and if the head and shoulder formation either confirms to the up or downside which can happen with such head and shoulder formations.

It will be highly important and necessary to look at how Litecoin completes the final wave E in the structure and if the pullback there will be a strong one or not with that high volatility, depending on this next measurements can be done, when Litecoin pulls back from the cluster with a heavy move this can indicate the head and shoulder formation also confirming bearishly to the downside, when the volatility is not that high it can also reverse and take up the head and shoulder bullish, within the bullish case the price needs to decisively close above the descending-trend-line in grey and stay there, within the bearish case the price needs to break out below the neckline with a solid volatile move and with a pullback this will point to a bearish continuation to the downside, now it is important to look how Litecoin is developing further under the suggested conditions.

In this manner, thank you everybody for watching, feel free to support, have a good day and good trading, all the best!

Information provided is only educational and should not be used to take action in the markets.