A (Not Really) Very Bearish Scenario for LTC
The perception of crypto has undergone a fundamental transformation in the past 12 months. Paypal. Tesla. Apple. Celebrities. It seems like everyone is buying, adopting, or at least considering how to integrate it into their business plan. Portfolios are recommended to contain BTC. It’s nowhere but up from here, right?
Right.
But.
Sometimes you have to take a step back to take two (meteoric) steps forward.
We’re using LTC as our example, but the same could be said for most any coin. Let’s zoom out to the weekly chart. For all the red in the last couple days, we’re still outside of the upper bounds of our regression line. Candles hate to be outside of the regression line. And weird things happen when they are. Like they snap back in with a fierceness. Not always. But sometimes they do.
Maybe often they do.
Let’s look at the MACD. It’s turned in a little, but anything could happen yet. LTC could bounce back from 170 and keep on up, seeking out that ATH. That’s probably what it’ll do.
Probably.
But the RSI looks ominous to me. We’ve had two peaks above 70, each lower than the last, with the first north of 80. In a bull cycle, RSI usually peaks around 80/90 and finds resistance around 40 or 50. At $170, we’re still hovering around 60. What would an RSI of 40 look like?
Much lower. Especially considering the lower shadow, of which the RSI wouldn’t chart.
So, what am I saying? Are we doomed?
Hardly. But consider this — gird yourselves for the ides of March. Steel yourself. Keep some reserves on hand. And be willing to go all in if LTC, or your coin of choice, drop half its value compared to today’s price.
You might not see an opportunity like this again for years.
Right.
But.
Sometimes you have to take a step back to take two (meteoric) steps forward.
We’re using LTC as our example, but the same could be said for most any coin. Let’s zoom out to the weekly chart. For all the red in the last couple days, we’re still outside of the upper bounds of our regression line. Candles hate to be outside of the regression line. And weird things happen when they are. Like they snap back in with a fierceness. Not always. But sometimes they do.
Maybe often they do.
Let’s look at the MACD. It’s turned in a little, but anything could happen yet. LTC could bounce back from 170 and keep on up, seeking out that ATH. That’s probably what it’ll do.
Probably.
But the RSI looks ominous to me. We’ve had two peaks above 70, each lower than the last, with the first north of 80. In a bull cycle, RSI usually peaks around 80/90 and finds resistance around 40 or 50. At $170, we’re still hovering around 60. What would an RSI of 40 look like?
Much lower. Especially considering the lower shadow, of which the RSI wouldn’t chart.
So, what am I saying? Are we doomed?
Hardly. But consider this — gird yourselves for the ides of March. Steel yourself. Keep some reserves on hand. And be willing to go all in if LTC, or your coin of choice, drop half its value compared to today’s price.
You might not see an opportunity like this again for years.
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