Litecoin, Preliminary Set-Up To Form The Next Wave!

Hi, welcome to this analysis looking at litecoin 1-hour timeframe perspective, the cryptocurrency market divergence between the individual coins is increasing further, this is a fact we should consider when approaching the market and the different coins within it, therefore while other cryptocurrencies looking rather bullish and possible to form some up moves litecoin is forming a more bearish than the bullish environment at the moment. This is important to note as we can't approach the market like in 2017 where just everything went volatile in one direction the divergence is increasing and a good example is litecoin at the moment, as you can watch in my chart it is trading below this major horizontal resistance marked in red at the 45.35 level where litecoin has established serious resistance by past price action, besides that there is coming the falling resistance also together forming a coherent resistance cluster.

The next times we can expect litecoin to form the next key wave D within its wave count which will lead to test the lower boundary anew, when the lower boundary holds sustainably in this case it can set up to form the final wave E which will possibly complete the whole wave-count however this final wave will run directly into the strong resistance cluster marked in red which can be the origin for the channel-formation litecoin is trading in to result in a bear-flag showing lower levels in the structure. Currently, the bearish case is more likely within litecoin, this needs to be differentiated with the rest market. There is only a little possibility at the moment for litecoin to confirm bullish, in this case it has to take out the strong resistance layers where the likelihood to confirm bearish is higher, a definite close below the lower boundary of the bear flag will activate lower levels surely to be reached.

In this manner, thank you for watching, support for more market insight, good day to you, and all the best!
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Information provided is only educational and should not be used to take action in the markets.