Hello My Dear Traders Investors And Community, hopefully, everybody od you are doing well, today I have a look on LITECOIN and what we can expect from the next days and weeks, there are some interesting technical observations I made looking on the 4-hour time-frame. As I already pointed out with ETHEREUM we are still in an important zone, the same is with LITECOIN but we a different edge in the overall chart-picture. Therefore let's have a calm look at the current situation. Feel free to support for more market insight, my friends!
Now, when looking at my chart we can see that LITECOIN is trading in a major up-trend channel, you can see this channel marked with the grey trend-lines which go to the right loft of the chart, this is an important up-trend-channel for LITECOIN because it touched several times on the lower-trend-line of the channel, as you can see this marked in my chart with the purple circles, that shows the high significance of this up-trend-channel, when we cross below the channel this will be a bad bearish sign for LITECOIN and the falling downtrend channel which you can see in my chart will be intact therefore in this scenario a high possibility is for more downside is given.
What is a good sign currently is that LITECOIN is trading on an important bullish support-zone which you see marked with the orange box and the black trend-line, we have support in this area from past price movement and also it is building a logical coherent confluence-zone with the up-trend-channel. Therefore the possibility is given that we will see a bounce to the upside from that level, this scenario is confirmed when we cross the falling downtrend channel to the upside, but be aware! This can also be a fake-breakout with a bounce-back down after the test failed, therefore, we need a concrete confirmation with good momentum in this range.
Both scenarios can be traded accordingly to the structure but the right scenario either the bullish or bearish should be confirmed rightly as I already mentioned! For the bearish scenario, the logical breakdown of the up-trend channel to the downside with a definite trend-continuation in the falling down-trend-channel can be traded after confirmation with a conservative SHORT-entry. The bullish scenario can be traded after we confirmed above the falling-downtrend-channel and above the orange box you see in my chart. In both cases, we have to wait and don't rush in an unsuccessful trade which goes in the other direction, this is what a good trader should always keep in mind to take the opportunities with the highest probabilities, in this case it will be when either scenario has confirmed properly!
In this manner have a good day friends ;) Feel free to support for more market insight. Success comes from elevated concentration on the projected goals FAREWELL
Information provided is only educational and should not be used to take action in the markets
Comment
⋅
ANALYSIS UPDATE: This level marked a highly important change zone for LITECOIN because from there on the massive volatility push increased significantly.
Since LITECOIN bounced within the levels it increased the bullish momentum to new peaks and accelerating the bullish direction.