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, just like BTC , LTC is now in the third flag, of a series of bear flags. Also similar to Bitcoin , LTC has a rising support level (green trendline ) that is very important for it to hold. The green trendline originates on 11/1, and catches the low of 2/6. It projects outward below the current price action, and a near term test of it would probably be in the 130-135 range. As you can see, the projected full scale breakdown of the triangle formation, ties in perfectly with the 135 area, but the large bear flag actually projects a correction below the rising green trendline . In terms of the current flag, it also projects a full scale breakdown to around the 135 area. So, we can see that there are several formations here, which indicate a continuation to lower levels.
There is some minor support along the way, such as the 78.6% retrace, and a more significant support level at 137.32, which is generated from the low of 1/17. However, the technical indications suggest an eventual test of the rising green trendline .
The MACD has just formed a bullish crossover, but that isn't a strong indicator of bullishness at the moment. It's normal for the MACD to find relief during consolidations, but the other bearish factors are more substantial.
You can see that the 20 EMA (in blue) is falling through the current bear flag . The 20 EMA is what produced the resistance that caused the last bear flag breakdown, so it is likely to cause this flag to breakdown as well. Therefore, we can use the 20 EMA as an indicator of the breakdown possibilities of this flag. If LTC stays below it, the odds of a breakdown are very high. So, keep an eye on the 20 EMA , and a breakdown of the current bear flag , as we continue our decline to the aforementioned levels. Good luck trading, comrades!
This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, upvote , and resteem. Good luck trading everyone!
This information is not a recommendation to buy or sell. It is to be used for educational purposes only.
