Hi friends! Welcome to this update analysis on Litecoin! I've got a lot to say about this chart, so let's get right to it! Looking at the four hour chart, you can see that LTC has continued to advance with the crypto space, but is now running into some heavy overhead resistance. At the end of March, LTC broke down from a massive triangle formation (in black,) and now, it's trying to surpass the extended lower trendline of the triangle. Interestingly, the extended lower trendline is intersecting with the area that is around the apex of the triangle. Many people don't realize this, but triangles often return to the apex after a breakout, to test that level as support or resistance. With that said, it appears as though that is exactly what is happening here with Litecoin. We broke down from the triangle at the end of March, and now we're testing the apex level as resistance.
With that said, there are several key things to note here. Firstly, LTC has surpassed all of the major moving averages. Looking at the chart, you can see that it is above the 50 EMA (in orange) the 200 EMA (in purple) and the 1200 EMA (in red) which is equivalent to the 200 EMA from the daily chart. So, LTC has clearly surpassed all of the critical moving average. However, it appears to be having some trouble surpassing the extend lower trendline of the triangle. More generally, it is consolidating in the "triangle apex resistance zone." This is a bit concerning, and it's definitely not an area where I would want to place a trade. Therefore, we need to wait and see if LTC can breakout above or below the apex resistance zone. If we get above the apex resistance zone, that means that LTC will have surpassed the extended lower trendline, the apex resistance, all of the moving averages, and the 61.8% retrace. In that case, there would be very little overhead resistance, and long trades would thus have a higher probability of success. The same is true for a breakdown below the apex resistance zone. If LTC gets into the sell zone, it would have failed at the apex resistance, and dropped back below the major moving averages. That would be a very bearish development, and that's where I would be interested in new sell-side trades.
I am neutral to bearish on this market, and I still don't believe that the bottom is in. Until we see a solid breakout into the buy zone, we could easily be rejected here. A powerful rejection, coupled with the return of the bears, could send LTC below 100, in a move that would be a routine continuation of the bear market. Don't forget, everyone thought that the bear market was over during the rally of mid February, and we're still in lower high territory. In the longer-term view, the bears are still in control. Nothing rises or falls in a straight line, and as far as I'm concerned, this market still has some proving to do, before I even think about siding with the bulls. 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.***
Lol can you image the shitstorm this guy's gonna rain down on TV if he's proven right :D
indubbwestep
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LOL
cedarfox
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I advise caution to anyone considering a long position right now. The better time to enter a long position is when the market is crashing. Based on my study of this chart, I am expecting our short term top of LTC and BTC to occur somewhere between April 26 - May 2. I expect a buying opportunity in May,approx May 17-20 or so. That being said, I still do think if you buy now and don't sell it in the big crash coming and hold on to it until the fall of 2018, you will still likely make a good profit. In my opinion. Up to you to decide. :)