Litecoin analysis: Intraday Timeframe bearish Chart Pattern.
Conclusion for today’s Litecoin price analysis: Litecoin price should continue to sell off until the 200 moving average gives way to more bullish momentum.
Litecoin price chart presented in today’s analysis is an intraday (6 hour) timeframe using a log scale. Price action from December 14, 2018 to current date shows a dominant uptrend in Litecoin price that reached a peak of 142.14 June 22, 2019. A selloff following the June 22, 2019 peak constitutes the rest of the analysis and future development of price action.
Price action from May 15, 2019 to current date saw Litecoin form a complex, head and shoulders top pattern that did confirm on August 9, 2019. The neckline for the pattern as drawn on the chart (dotted lines) is part of the long term bullish trendline in Litecoin established since December 2018.
Price breaking and closing below the trendline is bearish and implies further move to the downside in Litecoin. The width of the Head and shoulders top pattern can be used to estimate the minimum target for the current selloff.
Use of the width of the pattern however does require using an arithmetic scale for any price projection. This involves measuring the vertical distance and projecting it downwards from the neckline.
Also plotted on the chart is the 50 moving average and 200 moving average. Both moving averages having a negative slope also adds to the current bearish bias in Litecoin price. Any bullish attempt or retracement is therefore expected to test price level at the 200 moving average.
A successful test of the average could provide grounds for another round of sell off, while price closing above the average does suggest renewed bullish momentum in Litecoin that could see price return back above its June 22 peak.
Litecoin price chart presented in today’s analysis is an intraday (6 hour) timeframe using a log scale. Price action from December 14, 2018 to current date shows a dominant uptrend in Litecoin price that reached a peak of 142.14 June 22, 2019. A selloff following the June 22, 2019 peak constitutes the rest of the analysis and future development of price action.
Price action from May 15, 2019 to current date saw Litecoin form a complex, head and shoulders top pattern that did confirm on August 9, 2019. The neckline for the pattern as drawn on the chart (dotted lines) is part of the long term bullish trendline in Litecoin established since December 2018.
Price breaking and closing below the trendline is bearish and implies further move to the downside in Litecoin. The width of the Head and shoulders top pattern can be used to estimate the minimum target for the current selloff.
Use of the width of the pattern however does require using an arithmetic scale for any price projection. This involves measuring the vertical distance and projecting it downwards from the neckline.
Also plotted on the chart is the 50 moving average and 200 moving average. Both moving averages having a negative slope also adds to the current bearish bias in Litecoin price. Any bullish attempt or retracement is therefore expected to test price level at the 200 moving average.
A successful test of the average could provide grounds for another round of sell off, while price closing above the average does suggest renewed bullish momentum in Litecoin that could see price return back above its June 22 peak.
