MagicPoopCannon

Alts Like Litecoin Are On My Radar! (LTC)

COINBASE:LTCUSD   Litecoin / U.S. Dollar
While everyone and their grandmother is focused on Bitcoin , alts like Litecoin are starting to look more and more attractive. While Bitcoin has bearish divergences galore, Litecoin has none. While Bitcoin is at a multi month high, Litecoin has retraced 30% during the past month. While Bitcoin is running into major resistance, Litecoin is testing major support. Bitcoin is, and will probably always be, the best crypto known to man. However, that doesn't mean that it is the best place to be in the short term.

Looking at the LTC chart, we can see that it was in a rising channel (in blue) which it exploded above in the beginning of April, rallying all the way to 100. Since then, price has fallen all the way to 65. So, from a value perspective, LTC is currently at a near 30% discount from its recent high.

Lets talk about support. First, I want to draw your attention to the 50 EMA (in black.) Looking from the left side of the chart, you can see how it acted as pivotal resistance practically every time LTC contacted it. However, after Litecoin decisively broke out above the 50 EMA , it hasn't fallen back below it for any extended period of time. We can see that price has been testing the 50 EMA for the past couple of weeks now, and it has been holding as support. That is a major change. This critical average that was resistance in the bear market, now appears to be holding support.

In addition to holding the 50 EMA as support, price is currently holding the top of the blue uptrend channel , after breaking out above it in early April. Also, the 38.2% Fibonacci retrace is running through this area. So, there's a cluster of converging support here, and that could end up forcing LTC to return to the upside.

However, LTC is currently in a downtrend channel (in pink.) Ideally, the bulls need to see Litecoin break out above that pink downtrend channel . If that happens, I think LTC will be retesting the 100 handle in the near future. On the other hand, if LTC breaks down below this support zone , and particularly the bottom of the green ribbon, then it could experience an even deeper correction, potentially down to the bottom of the blue uptrend channel . Despite being in a downtrend channel , LTC remains in an overall uptrend, forming higher highs and higher lows on the chart. For now, I'm looking for this support zone to hold, producing a breakout above the top of that pink downtrend channel . That would be a technical buy signal.

On the indicators, you can see that the money flow is rising (bottom indicator) while price has been falling during the past week. That's a bullish divergence which shows that price may be in for a rally. However, the MACD is all over the zero line, trying to determine which direction it's going to break. So, LTC is looking attractive, but we need to see this support region hold, and we need to see a breakout above the pink downtrend channel . If that happens, a retest of 100 would likely be imminent.

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-
Man where’s the guy calling for 5 bucks
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LTC just strike a deal with Travala, will be used to book hotels all around the world, expect good things.
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