As posted yesterday, LTC needed to break the upper boundary of the downward channel. Well, having made considerable progress it looks like we bounced right off it. For a moment it almost looked like we were breaking the BTC hold and that LTC was developing a mind of its own, we shall see.
Technically LTC is still very much in a downtrend, firmly inside the channnel formed by recent lower highers and lower lows. Increased volume and reasonably strong move up needs to maintain enough momentum to get through some considerable resistance and break the top of the channel, the 200EMA and ultimately, create a higher high.
We are not far off a full retrace to where we started all this moon madness. Now we are approaching the bottom of the downward channel on the 4 hour chart AND the November support. $75 could be an opportunity but I'd need to see the MACD indicator turning up on some volume. Be careful.
Despite following various channels it appears we are consolidating December's big move up on one big wind up. A break out of here could indicate the next big move. In the mean time, a possible short term trade developing. Watch for any increase in volume as we approach the boundary.
Not advice, just what I'm watching, I'm out at the moment. DYOR
Currently hovering at the trend line (solid red) where it meets support (dotted red) aroun $230. If it breaks through this, the next support i around $205/$210. Below $205 is a bit of an abyss!! Unfortunately we're still trying to start our own engines and break the tow rope attached to BTC.
My views only, not advice. I'm out at the moment.
