Welcome friends, foes, animals, aliens, my family of crypto lovers, to this update analysis on LITECOIN! Let's do it! Looking at the four hour chart, you can see that LTC is continuing to follow my pattern on the chart. If you recall from my last few analyses, I've been covering this repetitive pattern that I noticed. The pattern starts with a bear flag which produced a spike down (blue arrow,) followed by a rally above the 50 EMA (red arc,) followed by a consolidation (green oval) below the 50 EMA (in orange,) followed by a big drop.
Currently, we are in the green oval consolidation phase, and if this pattern continues to repeat itself, we should see a breakdown in the near future. When patterns like this emerge, they are a godsend in analysis. However, they all end at some point. With that said, I don't think that this pattern will end here, because we are in an obvious bear flag consolidation. Therefore, the technical odds favor a breakdown based on the bear flag alone. This is very interesting, because just below this action is the exact double bottom low from 2/6, at 105.20. In my opinion, it looks like the market is building up some technical energy, in order to attempt a powerful test, and potentially a breakdown below the 2/6 low.
Additionally, you can see that the 20 EMA (in blue) is beginning to pass through the body of the bear flag. In the past, the 20 EMA has been very effective in producing bear flag breakdowns, so that may be the case right here. If LTC does rally above the 20 EMA and out of the bear flag, the 50 EMA would likely cap the rally attempt. However, a rally is far less likely than a breakdown. Stay on your toes, and watch the action around 105.20, when we get there. 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.***
-Magic loves you-
-JD-
Currently, we are in the green oval consolidation phase, and if this pattern continues to repeat itself, we should see a breakdown in the near future. When patterns like this emerge, they are a godsend in analysis. However, they all end at some point. With that said, I don't think that this pattern will end here, because we are in an obvious bear flag consolidation. Therefore, the technical odds favor a breakdown based on the bear flag alone. This is very interesting, because just below this action is the exact double bottom low from 2/6, at 105.20. In my opinion, it looks like the market is building up some technical energy, in order to attempt a powerful test, and potentially a breakdown below the 2/6 low.
Additionally, you can see that the 20 EMA (in blue) is beginning to pass through the body of the bear flag. In the past, the 20 EMA has been very effective in producing bear flag breakdowns, so that may be the case right here. If LTC does rally above the 20 EMA and out of the bear flag, the 50 EMA would likely cap the rally attempt. However, a rally is far less likely than a breakdown. Stay on your toes, and watch the action around 105.20, when we get there. 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.***
-Magic loves you-
-JD-