Hi friends! Welcome to this update analysis on Litecoin! Let's jump right in. As you can see, LTC rallied to the top of the channel, but was stopped cold there. Since then, LTC has turned lower, formed a small bear flag , and has broken down below the 50 EMA (in orange) — the old nemesis. In addition to losing the 50, you can see that LTC is also trading below the 78.6% retrace. If you recall from my last LTC post, I said told you that we needed to keep a close eye on the downtrend channel , because it was do-or-die. By the looks of things, it appears to be "die." Also, I think it's safe to assume that we have not formed a double bottom , at this point. I do still think that the market is trying to bottom out around here, so it is possible that LTC is in the process of forming an inverse head and shoulders pattern, like so many of the other cryptos that I follow. I've drawn the hypothetical right shoulder of this pattern on the chart, to illustrate the possible future development. In addition to being rejected at the top of the channel, and losing the 50 EMA , you can see that we've just crossed over bearish on the MACD , indicating a shift in momentum. However, you can also see that there is a significant bullish divergence that has been building on the MACD , which adds to the market reversal theory. In short, some bullish reversal signs are beginning to emerge, in LTC and across the crypto space. However, it also appears like we may get a final push lower, before we actually see real evidence of a turn in the market. Remember people, THIS IS STILL A BEAR MARKET. We are still in a bear market downtrend, and we just saw a reversal at the top of the downtrend channel . If we can't get above the downtrend channel , LTC will fall indefinitely. Obviously, I don't necessarily think that will happen. I'm just emphasizing the importance of climbing out of the falling blue tunnel of death.
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!
