Hi friends! Welcome to this update analysis on Litecoin! Let's get right to it! Looking a the daily chart, you can see that LTC is continuing to form what appears to be an inverted head and shoulders pattern, as it trades in sync with BTC. With that said, it is still unknown whether BTC, LTC, and the rest of the crypto space are going to rally from here, because we do not have any confirmation yet, that these apparent inverted head and shoulders formations are actually going to break out to the upside. However, despite that, I feel that the tides could very well be turning in the crypto space. Before I get ahead of myself though, we do need to see a bit more bullish evidence.
One very important thing to note on the LTC chart, is the action around the 50 EMA (in orange.) As many of you know, I have been talking about how important this is for a very long time. Looking at this chart, you can see just how reactive the 50 EMA has been. Starting from the left side of the chart, you can see that the 50 EMA was held on numerous occasions (green moons,) during the last bull market rally to the all time high. It was a critical support level on the way up. As we move to the right side of the chart, we can see that the 50 EMA has acted as critical resistance (pink lightning bolts,) multiple times on the way down.
Since we can see how reactive the 50 EMA is, we can use it as an indicator to help us understand when the market may be reaching a major reversal point. More specifically, if we suddenly begin to get above the 50 EMA, hold it as support, and then rally higher, that would be a technical indication that something very different is occurring. 50 EMA support hasn't existed during the majority of the bear market. So, that would be an important turning point for technical indications.
With that said, you always want to trade off of multiple indicators. I usually look for at least three or more indicators, to gain confidence in my technical perspective. Looking at the MACD, we can see that it has printed two very clear bullish divergences. The first one was massive, but it failed to produce a breakout to the upside, which isn't abnormal for divergences. The second has been much smaller, but the fact that it was printed immediately after the fist one, shows us that the sell side momentum is rapidly decaying. Furthermore, the MACD is currently starting to get above the zero line. So, if momentum can begin to more higher, thereby holding the zero line, that would be a technical buy signal.
So, the MACD is beginning to look increasingly bullish. Price is currently above the 50 EMA, and attempting to hold it as support. Price is also printing what appears to be an inverted head and shoulders pattern, with a large bull flag in the right shoulder (in black.) If I were to zoom in, you can see that price is currently just getting above the bull flag, but volume is very light. Ideally, we should see a bit of a rise in volume, as price holds the 50 EMA as support, and rises toward the inverted head and shoulders neckline (in green.) A break above that would complete the IH&S pattern, sending LTC toward the mid to high 40s.
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.***
MagicPoop, stop giving people false and misleading information on what the chart is doing.
earthling
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@The_BILLMEIST, Looks like the information Magic gave out was right on target...just hit the play button. But even if the market did not go the way Magic said it was more likely to go, and even if LTC reverses now, it would not make this TA wrong or misleading. TA is just looking at charts and indicators to discover probabilities. It is not a crystal ball. I think you are being misleading to suggest that this TA - which is using some of the strongest indicators we know of - is somehow false. Perhaps if you are going to spread such doubt, you should post a chart showing why it is inaccurate TA.
The_BILLMEIST
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LTC is going to dive in response to BTC's next dive. LTC is following the same trajectory as BTC, same deal, drops and fails to pass a previous resistance line!!
That iH&S fueled by artificial FOMO will never complete (in any coin).