Hi friends! Welcome to this update analysis on Litecoin! Let's get right to it! Looking at the four hour chart, you can see that LTC is continuing to consolidate sideways, in a bear flag below the 20 EMA (in blue.) If you've been following my pattern here, it's important to note that it's now beginning to deviate in a way that is a bit concerning to the viability of the pattern. The likelihood of downside movement still remains, particularly because we are in a bear flag, but the pattern is beginning to extend a bit more than I would have liked to see. If you recall from my previous posts though, I did note that these patterns can end unexpectedly. However, I'm not saying that this pattern has ended. I'm simply noting that it is now beginning to morph in a less than desirable way.
These patterns are very peculiar things, in technical analysis, and I think they emerge as a random fractal expression in the chart. I believe that because there aren't many people who can identify them, because they are more obscure than the general formations that analysts know and watch for. Therefore, they aren't traded as precisely, because analysts and traders don't recognize them to trade them in the first place, and thus cause the projection to come to fruition. That doesn't detract from the notion that the fractal expression won't continue further. In this case, we're looking for an extended breakdown, much like the one seen between 3/26 and 3/30, to take us down to potentially the 68 level. That would be a fall equal to the magnitude of the fall seen between 3/26 and 3/30, so it isn't like it's some huge impossibility for us to fall to 68 in a very short period of time. To put it into perspective, LTC just fell from 158 to 109 during the four aforementioned days — a loss of 31%. I realize that a fall to 68 is nearly -40% from current levels, but I do believe that the overall technical picture supports such a decline.
For now, let's watch for a breakdown of this small bear flag, as the 20 EMA (in blue) begins to enter the flag body. If/when the flag breaks to the downside, support rests at the double bottom low of 106.52, from 2/6. Below there, things could really accelerate to the downside, with support around 84 and then the 70-68 area. Rallies to and above the 50 EMA (in orange) continue to be selling opportunities in LTC.
I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic! Au revoir.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-Magic loves you-
-JD-
These patterns are very peculiar things, in technical analysis, and I think they emerge as a random fractal expression in the chart. I believe that because there aren't many people who can identify them, because they are more obscure than the general formations that analysts know and watch for. Therefore, they aren't traded as precisely, because analysts and traders don't recognize them to trade them in the first place, and thus cause the projection to come to fruition. That doesn't detract from the notion that the fractal expression won't continue further. In this case, we're looking for an extended breakdown, much like the one seen between 3/26 and 3/30, to take us down to potentially the 68 level. That would be a fall equal to the magnitude of the fall seen between 3/26 and 3/30, so it isn't like it's some huge impossibility for us to fall to 68 in a very short period of time. To put it into perspective, LTC just fell from 158 to 109 during the four aforementioned days — a loss of 31%. I realize that a fall to 68 is nearly -40% from current levels, but I do believe that the overall technical picture supports such a decline.
For now, let's watch for a breakdown of this small bear flag, as the 20 EMA (in blue) begins to enter the flag body. If/when the flag breaks to the downside, support rests at the double bottom low of 106.52, from 2/6. Below there, things could really accelerate to the downside, with support around 84 and then the 70-68 area. Rallies to and above the 50 EMA (in orange) continue to be selling opportunities in LTC.
I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic! Au revoir.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-Magic loves you-
-JD-