LTCBTC Short AFTER correction.
Updated
I'm still bearish on LTC. For those of you who hold LTC and may be underwater... This is actually a fantastic way to hedge against your hold.
(If the below plan works, you may BTC to offset the loss of your LTC value.. if it fails.. you recover LTC value due to price rise)
Fundamentally:
Technically:
So first up, I believe we need a correction upwards. I expect this to take several days, best guess would be anything from 4-8, maybe longer.
I have highlighted TWO possible entry points ready for the continuation of the downtrend I am expecting. Personally I will enter at the first with a fairly tight stop(will try to update nearer the time), if the stop loss breaks, I will re-assess quickly & update but expect the pink B to be a solid backup plan for continuation of the downtrend currently.
Keep in mind this is a plan to enter LTC AFTER it corrects upwards.. so we have a many days of data from now to help re-assess the position as we go.
But for now here's my view:
Risks to consider
This is not financial advice.
(If the below plan works, you may BTC to offset the loss of your LTC value.. if it fails.. you recover LTC value due to price rise)
Fundamentally:
- Litepay failed
- No real news *planned* https://coinmarketcal.com/?form%5Bdate_range%5D=13%2F06%2F2018%2B-%2B01%2F09%2F2021&form%5Bcoin%5D%5B%5D=Litecoin%2B%28LTC%29&form%5Bsort_by%5D=&form%5Bsubmit%5D=
- Other projects with newsflow attracting investor $ / BTC
- Shorting seems to be the flavour of the month currently...
Technically:
So first up, I believe we need a correction upwards. I expect this to take several days, best guess would be anything from 4-8, maybe longer.
I have highlighted TWO possible entry points ready for the continuation of the downtrend I am expecting. Personally I will enter at the first with a fairly tight stop(will try to update nearer the time), if the stop loss breaks, I will re-assess quickly & update but expect the pink B to be a solid backup plan for continuation of the downtrend currently.
Keep in mind this is a plan to enter LTC AFTER it corrects upwards.. so we have a many days of data from now to help re-assess the position as we go.
But for now here's my view:
- T D Sequential almost hit the complete 9 (8) + current daily candle signalling exhaustion of downtrend wave A, ready for correction wave B
- RSI destroyed, due a reset, look at the last time it was at this level (yellow circles) - we had a nice complex correction over 2 weeks before continuation
- MACD not really all that helpful currently..but again we have a fair few days ahead of us yet
- Large gap formed between the price & 20day EMA, further info for a correction. (The 50/100 too but I am not really interested in these currently due to the size of todays red candle)
- Correction upwards would line up well with the 38.20% fib
- Volume profile also looking relevant with a high vol in between both possible entry points
Risks to consider
- First off, these risks aren't really risks as we aren't opening a position yet..but still worth consideration for balance.
- Litecoin news (Historically I don't recall LTC keeping impending news a secret..except for when Charlie Lee sold his entire stack :D)
- BTC mega bull reversal.. God only knows what that would do to the rest of the market, hell it might even help the LTC bears..
- LTC just keeps dumping - though if this is the case we haven't lost anything & we wait for the next correction
This is not financial advice.
Note
I believe we SHOULD start to see the bounce up to the first entry point over the weekend. If we don't, we haven't lost anything. I certainly don't intend on opening a short on this right now as Technically it needs a pullback to retest the support that recently turned resistance - and the RSI needs a cool off, thats for sure.Note
Wow.. RIP Litecoin.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.