Dear all, Litecoin seems to be at an inflection point for multiple reasons. I'll explain. First for context please note you are looking at daily candlesticks in a chart whose scope is a little bit more than 2 months. The Fibonacci levels are determined from the run that started on Feb. 6 and ended on Feb .20. On Mar. 18 we saw LTC retrace to the .786 (in the first yellow elliptical) which served as perfect support and we subsequently witnessed a bounce. However in this bear market LTC fell further as we saw volume consistently decrease (denoted by a red downward sloping line).
Very recently we saw LTC retrace to within 3 dollars of the Feb.6 start of the run (denoted by the second yellow elliptical); if we break 106 we are probably headed down more. One moderately bullish development is that RSI is showing that LTC is oversold (denoted by a red arrow) which may provide some upward momentum. The last time RSI was at this level (first red arrow) we saw a sustained break to the upside. One bearish development that almost seems imminent is the 'death-cross' of the 50 day moving average nearly breaking below the 200 day, denoted by a sad face.
I entered LTC recently in the teens and am looking to sell in the low to mid 130's with a view to the .786 serving as resistance. If however LTC increases with volume I may hold longer. I want to emphasize the importance of studying contrarian views to your own. If you are long any given coin study short opinions and vice-versa, also be flexible and willing to change your mind, be like water.
Very recently we saw LTC retrace to within 3 dollars of the Feb.6 start of the run (denoted by the second yellow elliptical); if we break 106 we are probably headed down more. One moderately bullish development is that RSI is showing that LTC is oversold (denoted by a red arrow) which may provide some upward momentum. The last time RSI was at this level (first red arrow) we saw a sustained break to the upside. One bearish development that almost seems imminent is the 'death-cross' of the 50 day moving average nearly breaking below the 200 day, denoted by a sad face.
I entered LTC recently in the teens and am looking to sell in the low to mid 130's with a view to the .786 serving as resistance. If however LTC increases with volume I may hold longer. I want to emphasize the importance of studying contrarian views to your own. If you are long any given coin study short opinions and vice-versa, also be flexible and willing to change your mind, be like water.
Comment:
Apologies, there is a minor error in the analysis above. When I wrote '50 day moving average nearly breaking below the 200 day' what I was actually referring to is the 20 day crossing nearly crossing the 200 day, which is not as bad. Technically those two moving average lien have converged as of now for what its worth. However in the time since we have seen the formation of a 'shooting star' candelstick which is indeed a potentially bearish signal.