Following what seemed to be a strong bull run, we found the strong layer of resistance that was expected at the $32 level. This layer of resistance corresponds to the upper trend line of the triangle that is formed from the pre-SegWit highs. Bulls stumbled a bit after a correction following the run up to the resistance at $32, this led to a stagnation period in which the market decided its direction.
The price dip following this period corresponds to price dip that occurred on BTCUSD, as BTC reached resistance at the $3000 level. The drop rippled through the crypto-verse, and was felt on all alt-coin charts. A correction upward followed, and a bear flag appears to have formed. This could indicate a retest of support around the $27 level.
My overall sentiment for this coin on the long term is bullish, so I am perceiving this retest of support (which is a solid layer IMO) as a great reloading zone. Load up on cheap LTC.
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Support at the $30 level seems to be holding up, although it seems shaky. Stagnate volume indicates to me that market players are less flexible on their current positions. Today's resistance appears to be at the $31.00 mark, if we can breakout through it we may see another attempt to tag the $32 resistance today.
If you are a day-trader and bought the dip yesterday with an entry point at $30, the $28.50 level is your support for the day, so place your stops accordingly.
Weak Support: $28.50 Weak Resistance: $31.00
Strong Support: $25.00 Strong Resistance: $32.00
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Well, the short (finally) occurred, though it was minor. That bear flag waved out further than I initially expected it to. Anyway, we are sub-$30 once again, but support and resistance levels remain the same as the previous analysis. Watch that $28.50 level!
Optimists use limits on long positions, while realists use stops. Trade smart, and good luck! I'll be back with another analysis tomorrow.
One of the better if not best recent predictions and analysis Imo. Love the chart you made. What's your predictions on price exit targets?? Think it will top the segwit at of 36? Also have to take in account for bitstamp integration.
tl93
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@KFedTrading, This is merely my short term prediction for the next 24hr. The 4hr chart shows us teasing the upper trend line of a triangle that has formed since pre-SegWit highs. I think what we need is some good technical news from the development team, or news of large retailers accepting LTC. Regarding Bitstamp's upcoming support for LTC pairs, I am neutral. Recall the shorting that took place following Huobi's support of LTC pairs. We will see a breakout towards pre-SegWit highs soon, but the market decides when :)