Bears Caught With Their Pants Down! Litecoin! (LTC)
Hi friends! This is an update analysis on Litecoin! Just like most of the other cryptos out there, Litecoin appears to have created a deep cup and handle pattern on the chart. The bulls are catching the bears with their pants down, and if the bears aren't careful, the buyers are going to launch the crypto space higher. Technically, LTC is still in a downtrend, forming lower highs and lower lows, so the bears still have the edge. In terms of the recent price action, we can see that it's now actually trading above the critical support level, the breakout level of the cup and handle, and the 50 EMA (in orange.) The breakout is just starting to happen, so we need to keep an eye on it, to be sure that it's sustained. Keep in mind that LTC could easily retreat, rendering this a failed breakout.
I don't want to get too excited about a breakout in the early stages like this, but we can do some fun visionary work. Typically, when traders want to find a price target, they usually measure the structure in question, and then add the measurement to the breakout area to estimate a price target. When I do this sort of estimating, I like to find support or resistance that is somewhat close to the estimated price target. However, if there is a strong level halfway to the estimated target, I will opt for that. In this case, I think a fair target would be the 50% retrace, around $234. On the MACD, we can see that it continues to expand upward, and it has crossed the zero line, just like the other cryptos, which is a short-term buy signal. On the upside, initial resistance should be met at the 200 EMA (in purple.) On the downside, the critical support level should act as initial support. Below that, LTC would find support at the top of the falling parallel channel. Keep an eye on that breakout. If it continues to trade above the breakout level, that will be an indication of further upside. If we get back below the cup and handle breakout level, it will indicate a failed breakout, and prices could turn lower.
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-
I don't want to get too excited about a breakout in the early stages like this, but we can do some fun visionary work. Typically, when traders want to find a price target, they usually measure the structure in question, and then add the measurement to the breakout area to estimate a price target. When I do this sort of estimating, I like to find support or resistance that is somewhat close to the estimated price target. However, if there is a strong level halfway to the estimated target, I will opt for that. In this case, I think a fair target would be the 50% retrace, around $234. On the MACD, we can see that it continues to expand upward, and it has crossed the zero line, just like the other cryptos, which is a short-term buy signal. On the upside, initial resistance should be met at the 200 EMA (in purple.) On the downside, the critical support level should act as initial support. Below that, LTC would find support at the top of the falling parallel channel. Keep an eye on that breakout. If it continues to trade above the breakout level, that will be an indication of further upside. If we get back below the cup and handle breakout level, it will indicate a failed breakout, and prices could turn lower.
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-
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If this failure keeps up, I'll bring back that bear flag with the quickness people. Part of being an expert trader, is having the ability to be nimble, and abandon previous analysis ideas if new developments negate them. Part of being an amateur trader, is not flipping when the market tells you to.
-Magic-
-Magic-
-Magic-