The chart every trader winces at, and you can see why. It's *horrifying*. Looking at the chart we can see that a clear 5-count impulse Elliot wave has played out, and we now appear to be in the first leg of corrective wave. Money flow indicator (CMF) is signaling sell, RSI is crashing after bearish divergence from the run up to $100, Stoch RSI is nosediving. There is literally nothing bullish about this chart. It makes me sick, *but* we must acknowledge it. To ignore it does us no good. It is also important to remember that a correction is not the end of LTC, in fact just the opposite - it is *essential* to the future growth of it, in order to attract more investors.
Looking at the chart, I have overlaid Fibonacci retracement levels (using $4.09 as pre-boom price, and $98.28 as ATH). Interestingly enough, if we look at the Elliot impulse wave; we can see that waves 2 and 4 ended closed on the 0.382 and 0.236 levels nearly perfectly - letting us know that these will be key support areas to be tested in the corrective wave. Currently we are resting around the 50% retracement level, since this is not a Fibonacci retracement level I consider this more psychological than technical. I suspect that we will have a weekly candle that closes on or around the support at $40.69, which will be followed by a decent rally. This rally will attempt to jump back onto the long-term trend line that has been in place since the beginning of the 2017 boom. Additionally, the market will attempt to retest resistance at the 0.618 retracement level, but will likely see a pull back towards the support at $24.73 - which correlates to the 0.236 retracement level. This will complete the ABC corrective wave, allowing LTC to lift-off to new ATHs.
Don't mistake my outlook on this chart as a reflection of my feelings towards LTC. I am very pro-LTC, but technicals are what they are. I hodl a fair stack of LTC (no where near whale status) so if this proves to be wrong, I wont be disappointed.
Looking at the chart, I have overlaid Fibonacci retracement levels (using $4.09 as pre-boom price, and $98.28 as ATH). Interestingly enough, if we look at the Elliot impulse wave; we can see that waves 2 and 4 ended closed on the 0.382 and 0.236 levels nearly perfectly - letting us know that these will be key support areas to be tested in the corrective wave. Currently we are resting around the 50% retracement level, since this is not a Fibonacci retracement level I consider this more psychological than technical. I suspect that we will have a weekly candle that closes on or around the support at $40.69, which will be followed by a decent rally. This rally will attempt to jump back onto the long-term trend line that has been in place since the beginning of the 2017 boom. Additionally, the market will attempt to retest resistance at the 0.618 retracement level, but will likely see a pull back towards the support at $24.73 - which correlates to the 0.236 retracement level. This will complete the ABC corrective wave, allowing LTC to lift-off to new ATHs.
Don't mistake my outlook on this chart as a reflection of my feelings towards LTC. I am very pro-LTC, but technicals are what they are. I hodl a fair stack of LTC (no where near whale status) so if this proves to be wrong, I wont be disappointed.
Comment:
Although there as been some bullish momentum as this week kicks off, albeit lackluster and unconvincing, this pattern is still very much valid. If bulls are unable to pick up strength the bears will cause the price to retest lower supports (which get further away, %-wise, as the price continues up (though mostly sideways).
Comment:
Pattern still valid. Watching closely for a retest of support around ~$50.