I drew this chart a week ago trying to understand the next monthly trend. While I initially thought I just f**ked up, it seems instead to have some merit and might not be off as much as it was last week, where the chart literally ran around my generous price prediction zone. I cleaned it up a bit and it's still messy tho.
Long term support trends (orange and cyan) have been broken briefly and produced an unexpected momentum boost with the impulse wave being much stronger than I predicted.
This month's resistance (purple) now became support and monthly resistance (yellow) will be tested in the next few days. If it holds things might be ugly, since the next low could be around 130sh and purple line may not hold at all. But given the strong orange support I'd find odd that the monthly resistance will be a reason for a significant drop, apart from outside factors (FA).
I believe a possible development could be a break of monthly resistance in search of a break of the longer trend resistance line (light purple) so to turn it into support for the retracement. After the correction wave the price could end up at a point of very strong support and favour a bull run to break 253$ and go challenge 270$-300$ in May.
Thoughts?
p.s. sorry for the newbye language, feel free to grammar-nazi me to correct my technical language
Comment
⋅
Well, I fucked up and zoomed out to 1d when the chart was supposed to be intraday....
Comment
⋅
Then came Litepay news and no TA can hold that....
I don't think that any news has effect on this bots market, LTC is going down only because BTC is going down
HellordM
⋅
@urbanknight, fair enough, but must be noted that when I posted, LTC was "leading" and iirc it was the first to crash down (comparing bitfinex charts on scalp ranges).
At this moment LTC is lagging quite behind (~4%) so it seems the bots do their job keeping the trend similar, but news hit a certain amount and hopefully should fix in a few days, maybe carrying momentum. The spike low is probably due to breaking long term support, but news gave the momentum for the spike.
So I think news like these might be a bait for some whales to encourage some panic selling and profiting from the rebound.
LTC markets aren't liquid enough thus the amount of people with the budget to do this are quite a few.
That's how I think news have effects in these cases, it's more about greed than fear. But I also hope so, thus I'm a bit biased :)