Welcome to this update-analysis where we are looking at Litecoin 12-hour timeframe perspective, the recent events, the current formational structure, what we can expect the next times and how to possibly handle the situation appropriately. As Litecoin has managed to successfully form the head-and-shoulder-formation and breakout to the upside it now showed up with supply entering the market and firstly resulting into declines to lower levels in the structure where it is now at a point to test very important support layers established by the previous price-action, a big question is now if these layers hold sustainably or Litecoin firstly visits lower levels before, therefore I detected all the important levels and possible outcomes we should consider with Litecoin at the moment.
When looking at my chart you can watch there Litecoin now bounced a little bit from the support-line marked in blue were a marginal rally the next times can follow to upper levels which will lead to a pullback in the structure directly into the remaining support and into the dynamic-bounce-zone marked in my chart with the blue cycle where several supports coming together consisting of the 70-EMA marked in red, the horizontal support in black and the rising support-line marked in blue altogether marking this likely zone for a bounce to the upside which will show up when Litecoin has the proper demand in this area, here it is really necessary that Litecoin does not fall below this level because this will increase bearishness firstly and visit lower levels in the structure.
When Litecoin manages to form the bounce from the dynamic-support-zone as suggested this can lead to some up moves with potential given firstly testing the upper resistance levels again as it is marked in my chart and the , this will be an important resistance to take out and when Litecoin manages to move above this resistance it has the possibilities to continue further in the structure with next levels to be reached, this can also complete the bottom for Litecoin finally, for now we need to wait how the establishment with the final bounce in the dynamic-support-zone shows up further and how Litecoin will establish then, it will be an interesting journey and upcoming developments.
In this manner, thank you, everybody, for watching, have a good day as well as good trading, all the best!
“Trading effectively is about assessing possibilities not certatinties”
Information provided is only educational and should not be used to take action in the market.