Previously, at the $16 bottom, (in the middle of the "Big M") we saw an there as well, and well formed, it launched what seemed to be a strong reversal for LTC . But news out of China, the PBOC putting the boot on new Yuan, CNY , (Renminbi), capital inflow as deposits into btcChina and okCoin and other Chinese CryptoCurrency exchanges slammed LTC to the mat, along with . This news still contains great uncertainty for LTC markets and for CryptoCurrency markets in general.
After this second reversal post $9.119 lows, after trending sideways on a trickle of , having consolidated into a $16 to $17 channel, Litecoin breaks out at exactly $17, a classic channel breakout with vigorous spiking up green, and green candles to the upside. This strong rally, on Christmas Eve and Christmas day, seems to be tapering off in , and the chart I've drawn here seems to suggest the momentum of this current reversal ends somewhere around $25.74. On the tails of a failed reversal, Litecoin is want to sell off big again, fear still in the air, and lingering despair permeate the trollbox on btc-e. Bears are insulting and Bulls are manic, fear and uncertainty, mountains of FUD everywhere, a daytrader's delight on the 15M.
News and rumor rule, and significant good news will be needed to avoid an end of the year correction, and continuing overall down trending perhaps testing previous lines of sideways consolidation near previous rally highs before this big parabolic. We may see LTC spike down to as low as $4.50 in the worst panic, fear and despair scenario, but doesn't that simply define this issue, it's past history quite checkered and colorful. (3Dfilament)