Just like the rest of the crypto market, Litecoin suffered a major dump back down to $121 - $124 support range where its holding not only that level but also this uptrend drawn way back that held to a Tee.
From here, I really believe that the bottom is in and its only up from here. Notice how nobody was short at $183 (including myself, a little delusional on the bullish momentum not gonna lie) and now that we're at $124 everybody and their mother is short. In trading, you need to go against the grain to make money, if you're doing exactly what everyone else is you're never going to profit and you're chasing a move that's already played out.
Quick maths, Litecoin from the top at $183 down to $124 dropped 34% in the span of just over a day and honestly how much farther can it go down? 34% is almost basically half of the market cap annihilated overnight, do we all really think that it's going to continue dropping 50%, 60%?
From here, if you don't know what the definition of capitulation is I would highly suggest looking it up on Investopedia. Take a look at the chart example and it looks exactly like this chart, typical capitulation sell off.
Litecoin also rejected off of $145 but created a higher low and didn't go all the way back down to this uptrend level. I would set a buy order long on $136.38 support going long towards:
Shorted at 182. But I am a noob and havent learned how to manage risk at all. Market was so over extended I dont know how everyone didnt sell at 180...
kyer
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@forsakenProfil22916, Great short! happy for you!!
BallsOfSteel32
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@kyer, Thanks! Sadly I was wrong about the bottom, and rather than waiting for the bottom to be in, I had my buy back in at 140. That was my mistake. Still a great pickup.
Learning a lot from you and other seasoned TA's.
lowspark82
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I'm just buying more with the drops
rezland20
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@lowspark82, same, dipped out (panic sold lmao) at 165 and hopped back in at 129.