Litecoin LTC Bear flag and H&S, Part 5
Updated
What a pump Litecoin' did today, really sticking out of the average of this market. What i said a week ago: "As i mentioned in my Bitcoin' analysis yesterday, i would keep an eye on Litecoin', because it is a good indicator for the direction of this market." So far this LTC has been leading, but to be honest, the rest of the market is falling way behind. Especially Bitcoin' it's not even above the 4400 at the moment which is a bit worrying when looking at LTC'.
So far the Litecoin analysis of the past weeks has played out quite well, including the fake moves even. That small inverse H&S i showed the other day, played out as well but got resistance at the red zone, the big resistance level bull needed to break to invalidate the big bear flag and H&S. But the the green support/neckline of the small inverse H&S held as support a second time and since then the rally took shape.
If you remember from the first few parts of this LTC' analysis, i had some reasons to think why the H&S was not a real one, if you want to know, scroll back through the history.
For now, i think that channel will probably break, but the bulls need to keep it inside of the bigger bull flag and preferably even above the green zone. We do not want to see something like XRP' a week ago. Everything is there to continue the rally, the only thing holding the market is Bitcoin, nothing more! So i would keep a close eye on that one. And don't forget, it's almost weekend again.
Long term resistance level is around 50. The current bull flag, will be a very good indication to see if we can see an attack on that level the coming weeks or not. The bull flag it self (if it doesn't fail) has a target around 44.
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Previous analysis:
So far the Litecoin analysis of the past weeks has played out quite well, including the fake moves even. That small inverse H&S i showed the other day, played out as well but got resistance at the red zone, the big resistance level bull needed to break to invalidate the big bear flag and H&S. But the the green support/neckline of the small inverse H&S held as support a second time and since then the rally took shape.
If you remember from the first few parts of this LTC' analysis, i had some reasons to think why the H&S was not a real one, if you want to know, scroll back through the history.
For now, i think that channel will probably break, but the bulls need to keep it inside of the bigger bull flag and preferably even above the green zone. We do not want to see something like XRP' a week ago. Everything is there to continue the rally, the only thing holding the market is Bitcoin, nothing more! So i would keep a close eye on that one. And don't forget, it's almost weekend again.
Long term resistance level is around 50. The current bull flag, will be a very good indication to see if we can see an attack on that level the coming weeks or not. The bull flag it self (if it doesn't fail) has a target around 44.
Please don't forget to like if you appreciate this :)
Previous analysis:
Note
More than a week where nothing happens at all with the market, i choose to go out for a walk, thinking the second leg up might not even happen before Monday, the whole market pumps and LTC explodes almost. The target of the bull flag overreached and big rejection from the long term resistance zone around 50.
At the moment it looks like it dropped a lot, which it did, but the price overshot because of a short squeeze. So i would look at it like the 45ish was the high and that we are having a normal correction at the moment.
It's difficult to judge for me what the low of this correction should be, only level i can see is the green zone on the left.
Note
New LTC analysis:
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