Glitter, Cupcakes, Rainbows, and Butterflies — Litecoin! (LTC)
Hi friends! I'm not sure why I was banned, but I'm back, and I promise I'll be a good boy. I would like to welcome you to this ever-so friendly, unoffensive, kind, warm, and loving analysis on Litecoin! Let's jump right in. Looking at the four hour LTC chart, we can see that after breaking above the "critical support/resistance level," LTC failed to hold, broke down, and is now trading lower. We can see that LTC sustained a bear flag breakdown, as it's from a large inverted pennant formation. We also can see that the breakdown occurred as soon as LTC made contact with the 50 EMA (in orange,) which has been very reactionary thus far. Going forward, the 50 should continue to provide substantial overhead resistance.
Currently, LTC is grinding down the top of a small downtrend channel (black dots.) If we break back into this small downtrend channel, LTC could find initial support at the pink trendline. Below that, we have the 78.6% retrace, the bottom of the small falling channel, and then the bottom of the big blue channel.
Ultimately, LTC is trapped in this big downtrend channel, so, technically, the bears are still in control. Looking at the MACD, we can see that it just produced a bearish crossover, increasing the likelihood of an expansion in sell-side momentum. Volume is weak, and producing a low trough (red arc,) which in the past has preceded a corrective move. In addition to the low volume troughs, they end right when the MACD is crossing over bearish. That is exactly what we have right now. If this pattern is to repeat itself, a corrective move should follow. Pixie dust and fairies be with you.
This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, like, and share on social media. Good luck trading everyone!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-MPC loves you-
-JD-
Currently, LTC is grinding down the top of a small downtrend channel (black dots.) If we break back into this small downtrend channel, LTC could find initial support at the pink trendline. Below that, we have the 78.6% retrace, the bottom of the small falling channel, and then the bottom of the big blue channel.
Ultimately, LTC is trapped in this big downtrend channel, so, technically, the bears are still in control. Looking at the MACD, we can see that it just produced a bearish crossover, increasing the likelihood of an expansion in sell-side momentum. Volume is weak, and producing a low trough (red arc,) which in the past has preceded a corrective move. In addition to the low volume troughs, they end right when the MACD is crossing over bearish. That is exactly what we have right now. If this pattern is to repeat itself, a corrective move should follow. Pixie dust and fairies be with you.
This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, like, and share on social media. Good luck trading everyone!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-MPC loves you-
-JD-