We are looking at the one hour chart. Let's focus on what is going on in the blue circle on the chart after Litecoin broke below the horizontal support area shown on the chart by the blue horizontal lines.
Price is testing the horizontal support area as resistance. Price found the 120 bar moving average on the one hour chart in this old support area that is now acting as resistance. The hourly 120 bar moving average did halt upward moving prices. The 68 percent retracement level on the chart is measured from the high (point A) that brought price to the low where price bounced from (point B). The 68 percent retracement level is adding additional resistance. The red dash in the blue circle is the 50 bar moving average on the 4 hour chart. The slope of the 50 bar moving average on the four hour chart is down, so the 4 hour 50 bar is adding additional overhead resistance.
Let's list the resistance found in the blue circle: old horizontal support now resistance, hourly 120 bar, 68 percent retracement, and 4 hour 50 bar. Did mention the pink dash in the circle is the 200 bar moving average on the 4 hour chart.
The two white lines on the chart shows a measured move where price could go if resistance holds price down and sends it lower. They are the same length and slope.
If the resistance levels listed here do not hold, it will take a strong price move to go through all of them, and this analysis will have to be reevaluated. At that point we will be looking at a retest of the yellow down trendline. All information mentioned here is not a recommendation to place a trade. This is for educational use only. Lets wait and see what happens.
Price is testing the horizontal support area as resistance. Price found the 120 bar moving average on the one hour chart in this old support area that is now acting as resistance. The hourly 120 bar moving average did halt upward moving prices. The 68 percent retracement level on the chart is measured from the high (point A) that brought price to the low where price bounced from (point B). The 68 percent retracement level is adding additional resistance. The red dash in the blue circle is the 50 bar moving average on the 4 hour chart. The slope of the 50 bar moving average on the four hour chart is down, so the 4 hour 50 bar is adding additional overhead resistance.
Let's list the resistance found in the blue circle: old horizontal support now resistance, hourly 120 bar, 68 percent retracement, and 4 hour 50 bar. Did mention the pink dash in the circle is the 200 bar moving average on the 4 hour chart.
The two white lines on the chart shows a measured move where price could go if resistance holds price down and sends it lower. They are the same length and slope.
If the resistance levels listed here do not hold, it will take a strong price move to go through all of them, and this analysis will have to be reevaluated. At that point we will be looking at a retest of the yellow down trendline. All information mentioned here is not a recommendation to place a trade. This is for educational use only. Lets wait and see what happens.