Litecoin, In The Channel, Confirmation Comes When This Happens!

Hello, Traders Investors And Community, currently there are some interesting and useful signs in the cryptocurrency LTCUSD which I point out today. As many cryptocurrencies like bitcoin or ethereum looking decently bearish in the short-term we have some good support levels with LTCUSD which could cause a price growth on the short-term-scale at least approaching resistance. We are looking from a middle-to-long-term-perspective on the daily chart and LTCUSD is providing some useful information that will determine the further outcome. I made already an analysis of the short-term price structure which you can see when going to my account and look at the chart.

When looking at my chart you can see that LTCUSD is moving in an long time consolidation period which had its origins at the top formed on 23th June 2019 and is currently more than 266 days old, this is an overall consolidation period it is still not a bear-trend and otherwise, we confirm bullish to the upside also not a bull-trend. Therefore we need to know that this type of consolidation period will show a breakout either to the up or downside in the long-run. The longer we stay in such a period of consolidation the heavier the breakout will be, it is a logical mechanism in the markets.

Currently, LTCUSD has found its support at the 50-EMA which you can see in my chart marked with black, it is holding as support but the fact that we touched it from the upside can be bearish when we do not manage to hold it as further support otherwise when it holds there is a possibility given for LTCUSD to move higher at least approaching the 200-EMA which you can see marked in blue, this will be an important test for LTCUSD and when it is successful there is room to touch the resistance-cluster you can see in my chart at the 61 USD level! When we approach this level LTCUSD will highly likely conrfirmed as resistance because we have more than one resistance-factor here, once it is the resistance of previous lows formed and the falling trend-line which should not be ignored!

Overall we need to know that there will come minimum a correction to the downside correction of the current trend. In this case, we have to watch either the correction is heavy, not so heavy or it turns out that it is actually a reversal to the downside! When looking at this perspective we can prosper the 61.8 % Fibonacci-support as the next major support zone in this structure, it is highly possible that we bounce there when we approach it otherwise when it fails we can still fall more but what is important to hold the price in the range is that we do not fall below the significantly important level at the 22.5 to 22.9 level which will be the last needed support in the structure to hold the price up, when we fall below that level the trend turns bearish so it is definitely meant to keep it in mind.

When looking on the bullish side we need to take out the first falling resistance-line which you can see marked in blue in the chart and after that the falling black resistance-line when this happens we can see the bullish zone above the black support-line but for this scenario, it is still a long way to go as we have a minimum correction to come. Currently, we have to see how LTCUSD develops and then take appropriate action, I see many people calling the moon soon in two weeks for LTCUSD but this is an illogical approach and too speculative we need to elevate ourselves above this inconsistent market approach, therefore, keep a clear head and look at the situation as it is, therefore we need to keep patient and look at given confirmations when they arise.

Thanks for watching, have a good start in the week and support for more market insight!
The doors of market-wisdom are never shut.
In this manner: FAREWELL

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