Litecoin, Heavy Volatile Movements On The Verge To Continuation!

Hello Traders Investors And Community, welcome to this analysis where we are looking on the importance of the recent events that occurred within LTCUSD within its 12-hour timeframe perspective. The cryptocurrency market experienced heavy volatile downward movement the last times which should not be kept by side and for further contributions, it is important to note in which direction the overall market is heading and if these movements are just of short-term-perspective or if there is coming more pressure to the downside, as I mentioned in previous analysis looking at the weekly timeframe perspective LTCUSD approached important upper boundary resistance which has now been realized, furthermore I detected some important signals which making the next directions and possible further outcomes clearer.

Having a look on my chart you can watch that LTCUSD bounced from the upper resistance to the downside and now somewhat found marginal support which can lead to a merger rally testing higher levels of remaining resistance but as such bearish movement is normally followed by minimum another leg to the downside the remaining resistance will be realized within a high possible spectrum which you can watch marked at my chart at the Fibonacci-resistance in red 61.8 level. When LTCUSD visits this area there is a decent potential given that LTCUSD bounces bearish as there is also resistance lying established from past price-action, when this is playing out properly LTCUSD will highly likely test lower levels at the EMA structure and the support marked in orange between 49.3 and 49.8 which is highly important to hold when considering a bullish reversal and continuation into the bearish zone marked in my chart with more bearishness to come.

Counting all these factors together LTCUSD established an environment where it is definitely possible to show more downside over the course of next time, which will show when the resistance remains and includes further downside. This does not mean LTCUSD is overall bearish but it means that it has to show how it can react in the support levels waiting down the line there, as many people where bullish only this shows one more time that the market can have a quick turn in the opposite direction where inexperienced traders often fall apart in order to smart-money, in such situations it is significant to keep calm and either protect capital or look for possible opportunities also when it is not the appropriate trading direction, therefore, it is important to not get overly speculative especially in the cryptocurrency space where such volatility has often proved fatal in past price-actions so it can also happen these days.

In this manner, thank you for watching, support for more market insight and have a good day!

Information provided is only educational and should not be used to take action in the markets.

Comment:

Bounced from the resistance cluster, next times will be crucial