Hi friends! Welcome to this quick update analysis on Litecoin! All I can say right now, is the 50 EMA is a mofo! If you look at the four hour chart here, you can see that (except for one occasion) LTC hasn't successfully traded above the 50 EMA (in orange,) since the major rally to the all-time high. This is a bit concerning, considering the unusually optimistic analysis that I published yesterday — especially since LTC is currently being rejected by the 50. You can see that the 50 EMA and the 78.6% retrace were converging, and when you see that, it usually indicates a strengthening of that particular level. The MACD is starting to flatten out, and it looks like it wants to roll over, while the volume is beginning to decline. I'm going to be real with you, the analyst inside, is ripping me apart. Deep down, I knew that we would run into trouble at the 50, which is why I over-emphasized the hypothetical nature of yesterday's analysis. With that said, I am hugely interested in this formation, because double and triple bottoms usually indicate a longer-term reversal in a market. So, let's throw this bad-boy under the microscope, and see if it meets the double bottom requirements.
1. Did the first trough produce the lowest point of the current trend? No 2. Was it within 3%? Yes 3. Did we see low volume off of the reaction high? Initially, yes. 4. Are volume and buying pressure accelerating off of the double bottom? Yes 5. Have we seen a resistance (pink trendline) break? No 6. Is there a stall that is not impressing the MagicPoopCannon? Yes.
In short, LTC had better get it's a$$ above that 50 EMA, or this may not be a double bottom. Remember friends, never ever trade a pattern until you see the breakout. In this case, the breakout level is at the pink trendline.
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.***
hi poop,
is it LTC is gonna hit close to $200 dollars before it go down further like below $105
knutselwout
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If it's not going to trade above the 50 EMA soon then I'm here for anyone that needs a hug.
martied16
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I like this: "...never ever trade a pattern until you see the breakout." How many times have I tried to be clever and enter before the breakout and get slapped for it? Too many. Funny how I've read this a million times but choose to ignore it because I am smarter than the market. Supposedly.
NickPadovani
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@martied16, I was beyond tempted yesterday when it touched from 160 to 130. I was ITCHING to sell, but I said, "nah, gotta wait for that confirmation". Sitting here at 147 currently,I'm glad I made the decision I did.
zero-one
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@MagicPoopCannon diamond formation on LTC? bearish reversal? what do you guys think?
Timothie_Roggers
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I did laugh at this one I'll be honest
Shysurfer
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Poop, so what your tell/n me is that LTC is going to $83 ? Bitcoin going to $3500 at the end of March, and the other coins will follow. LTC to 80. please help make that happen.. I'm waiting on the sidelines for this move...
Syper50k
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can you do a chart on xvg verge?
ZachLad600
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Appreciate your posts! You should build this exact chart on LTCUSD Coinbase if you have an extra couple minutes. Feb 4 and 7 are touching the channel resistance. It seems like Bitfinex and Coinbase have about the same volume for LTC. I'm just curious about what you think. Stubbornly, I'm still saying LTC will touch 70 to complete it's consolidation, but i'm no expert.
Anyways, keep doing what you're doing! Thanks man!