MagicPoopCannon

It's Time To Exercise Caution, in Litecoin! (LTC)

COINBASE:LTCUSD   Litecoin / U.S. Dollar
I'm becoming increasingly concerned with this inverted head and shoulders breakout in Litecoin. You can see that we got above the neckline on above average volume , and price initially returned to the neckline and confirmed it as support. However, when we started to head higher, the rally just sort of fizzled out. Nothing is really happening. It would have been much more convincing to see a powerful surge higher in LTC, but everyone is waiting on BTC to move, and it just isn't.

With that in mind, it's possible that LTC is forming a sloppy bearish diamond pattern here (in pink.) A break to the downside of the diamond would confirm the pattern, but for now, it's just something to watch. Another thing worth noting, is that whenever LTC rallies above the daily 50 EMA (which is equal to the 300 EMA (in orange) here on the four hour chart) it almost ALWAYS returns to the top of it to test it for support. As you can see with the current price action, we just sort of shot up above the daily 50 EMA , and never returned to it for a test of support. So, if Bitcoin doesn't start moving to the upside, I wouldn't be surprised to see Litecoin roll back over below the head and shoulders neckline, to test the 50 EMA for support.

On the MACD , you can see that buy side momentum was rejected at resistance, when the MACD ran into the red trendline . Since then, we have printed a bearish crossover on the four hour chart, which is a technical short-term sell signal.

At the moment, this lackluster inverted head an shoulders breakout is not very convincing, and the underlying strength indicators are showing a rollover to the downside. For now, we should pay close attention to the breakout direction of that little pink diamond above the neckline. It will be key in understanding the forward direction. Keep in mind, this is a BEAR MARKET! We are all fixated on this inverted head and shoulders pattern right now, but this could be all that we get on the upside. For all we know, BTC , LTC and the others, could just be printing another lower high on their daily charts , in the very misleading form of an inverted head and shoulders fakeout. Be smart. Be nimble. Be cautious.

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-
Comment: And just like that, the diamond broke down hard to the downside...

lol nice chart, technical dont work for manipulated cois
+1 Reply
@detroit313, That's funny. Looks like it worked perfectly to me.
+8 Reply
@detroit313, You clearly didn't read the analysis.
+7 Reply
ADA BTC click play button. Any questions - let me know.
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This might be your most impressive call yet that I've seen, in my opinion. Great call Magic
+18 Reply
@Snuby3, um....except those people that bought this entire dead-cat-bounce (many did) assuming this was the bottom, are losing money right now. Meanwhile, my family, friends, followers, etc. have been advised to not buy until we get positive comments from the SEC/Fed/global governments, etc. Without it, bitcoin will not sustain a bull-run (don't forget price manipulation is very present). We have avoided buying bitcoin/alts in 2018 and I suspect it will be the case in 2019 (the only right call so far). All of these short-term TA moves with fancy charts lack an understanding of the fundamental story. Just my view, haven't heard a counter yet.

Welcome to follow along
+2 Reply
lowlandcptl Akhokhar86
@Akhokhar86, * not buy until we get positive comments from the SEC/Fed/global governments * do you truly understand the concept of bitcoin ? :/
+1 Reply
Akhokhar86 lowlandcptl
@lowlandcptl, Yes. I know that statement goes against everything that Bitcoin stands for. I'm not here to argue that point. I'm just pointing out that regulators are now in control, like it or not, it's just the facts (i've observed) It's why I constantly remind people that you have to stay objective and follow the data.

Most of these TV ideas lack this understanding. Bitcoin is going up against very powerful established forces that don't want it to survive. Kids in tree houses arent in a position to win this fight (if you get what I mean).

From what I can tell, most Bitcoin bulls are living in a dream world. As someone that understands economics/Wall Street, I just saw this coming long before most did.

The early (lucy) buyers will get tested soon. That's when blood will spill.

Just my perspective.
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lowlandcptl Akhokhar86
@Akhokhar86, :) I know what you mean and respect your outlook on the situation.. the btc/crypto movement is more of an ideology at the moment than a financial instrument/used as money.. but the outlook is promising that it will change,, even without the consent with the government agents around the world. a few more currencies around the world that collapse and we could kickstart this new 'money' system.. but will the rest of the world follow.. i guess that is the gamble :)
+2 Reply
Snuby3 Akhokhar86
@Akhokhar86, this is actually a litecoin chart, not a Bitcoin chart. Your failure to realize that simple fact doesn't bode well for you. I actually do my own analysis and am up over 300% right now trading LTC. But thanks anyways.
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