Litecoin, Close To Strong Support-Level, Here Are Next Steps!

Hello, Traders Investors And Community, welcome to this analysis about the current formation and price action forming in litecoin, there are some significant signs I detected on the daily time-frame. At the moment litecoin is whether confirmed bullish nor confirmed bearish this is why we are still in an indecisive-phase here and the next time will show how litecoin will proceed but litecoin has some good support levels below which can indicate a reversal to the upside when these levels confirm properly otherwise it can still fail and fall to the downside when confirmed below the major support in the structure.

What we need to keep in mind in the actual situation is that litecoin is still trading below the predominant EMAs you can see in my chart marked in blue with the 20 and 50-EMA already don't cross bearish or bullish this is why the current structure has to be confirmed in the proper direction as you can see it in the past months we had this EMA-confirmation litecoin confirmed either bearish or bullish, this signal is can come the next time when litecoin decides to take the upright direction before we do not see this EMA-confirmation-crossover litecoin is still in an inconclusive market.

When considering the bullish scenario we have an important support-level which is the key 61.8 % Fibonacci-support, it is marked in grey in my chart, when we touch this level it is within the high likelihood spectrum that we will get a bounce there because that level at 37.6 also matches with other support/resistance price levels litecoin formed in the past. It is a main task for litecoin to hold that level when bounced there otherwise when we fall below it there is a probability given that litecoin continues bearish to the downside because when the 37 level is crossed down there will be much berarish pressure below that level.

The next time we can expect that litecoin will test the 61.8% Fibonacci-support when it succeeds and forms support there we can contemplate more upside for litecoin and at least testing the higher levels in the overall structure, in this scenario it is also important that we take out the falling grey trend-line you can see in my chart. After that there are the 50 and 58 levels remaining to test for litecoin in the structure. To confirm bullish here we need to see at least the bullish EMA-confirmation because that was a high successful indicator for litecoin in the past it can confirm the further uptrend here.

Recall that it is highly important for litecoin to hold the 61.8% Fibonacci-support here otherwise when crossed to the downside the whole picture turns more to the bearish side. In the current situation, litecoin has to decide if it is strong enough to hold the proper support, therefore, it is important to wait and see how it develops which wise traders should almost always do. With opening a long-position it is important to wait on the confirmation before placing it which is the best idea in such a structure, we cant trade what we think we need to see the right confirmation before taking advantage of the opportunity, this gets highly important with the current layout in litecoin.

Thanks for watching, support for more market insight and good weekend everybody! ;)
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In this manner: FAREWELL

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

Comment:

ANALYSIS UPDATE: The most important price action factor within this whole development was the fact that LITECOIN greatly bounced within the Fibonacci support.

Since LITECOIN has done so it continued with bullish extensions into the trend directions.