Litecoin, Major Up-Trend-Channel Broken, Testing Higher Levels!
Updated
Hello, Traders Investors And Community and welcome to this analysis about the price-structure we are facing in Litecoin at the moment, there are some heavily significant signs which I detected in the chart, we saw high volatility the last time catapulting Litecoin more than 18 % to the downside in just one day after Litecoin formed a fake bull-flag. This shows one more time that the cryptocurrency market is highly volatile and therefore this volatility shouldn't be underestimated. I also made an analysis of Litecoin with a more middle-to-long-term perspective which I recommend you to see when going at my account and look at the analysis regarding this to have a full overview of the price-action we are looking at. This is an analysis of the locally 4-hour time-frame so let's go.
When looking at my chart you can see that Litecoin held a major uptrend-channel with its belonging up-trend, there were however several signs that the reversal was possible as I already mentioned in the previous analysis. Litecoin where one cryptocurrency with a relatively weak uptrend compared to bitcoin and ethereum and therefore it was in the possible spectrum that we got the bearish move to the downside we faced now. As you can see also in the chart Litecoin traded in a fake or false bull-flag, this is a formation which is suspected to be a bullish breakout pattern but actually breaks to the downside, there is however not a big percentage of probability that it turns out to be a fake one but in this current case, it happened.
In the next hours and days, we can anticipate that litecoin will test its remaining higher levels in the structure as the market is slightly oversold in the short-term basis and probably confirming the fake bull-flag you can see in the chart. Presently we can contemplate that litecoin has overall more potential to the downside as we saw these important bearish move indicating the further bearish continuation. The fact that we had this major high volume and bearish volatility is more bearish than bullish and it was not seen in the overall weak uptrend before. Therefore the likelihood is high that we will continue after litecoin tested the higher resistance areas.
The situation right now is a situation where litecoin has a high possibility to form the setup for the next leg down, this is currently the most likely scenario and has to keep in mind but that does not mean litecoin will continue bearish till it gets to zero like many people predicting now and that the bullish phase is over there are still some support levels at the way and therefore we will see if we can stabilize there and how the further possibilities will play out. Many people calling for the complete bottom now, this is a mere speculative tendency and we should keep a cool and rational head to assess the market as best, therefore, we need to see if the bearish signals increase or if we can stabilize on the way down and don't fall for the mere speculative tendency we see so many times these days.
Thanks for watching, support for more market insight and all the best!
The market-conditions are often the real source of truth.
In this manner: FAREWELL
Information provided is only educational and should not be used to take action in the markets.
When looking at my chart you can see that Litecoin held a major uptrend-channel with its belonging up-trend, there were however several signs that the reversal was possible as I already mentioned in the previous analysis. Litecoin where one cryptocurrency with a relatively weak uptrend compared to bitcoin and ethereum and therefore it was in the possible spectrum that we got the bearish move to the downside we faced now. As you can see also in the chart Litecoin traded in a fake or false bull-flag, this is a formation which is suspected to be a bullish breakout pattern but actually breaks to the downside, there is however not a big percentage of probability that it turns out to be a fake one but in this current case, it happened.
In the next hours and days, we can anticipate that litecoin will test its remaining higher levels in the structure as the market is slightly oversold in the short-term basis and probably confirming the fake bull-flag you can see in the chart. Presently we can contemplate that litecoin has overall more potential to the downside as we saw these important bearish move indicating the further bearish continuation. The fact that we had this major high volume and bearish volatility is more bearish than bullish and it was not seen in the overall weak uptrend before. Therefore the likelihood is high that we will continue after litecoin tested the higher resistance areas.
The situation right now is a situation where litecoin has a high possibility to form the setup for the next leg down, this is currently the most likely scenario and has to keep in mind but that does not mean litecoin will continue bearish till it gets to zero like many people predicting now and that the bullish phase is over there are still some support levels at the way and therefore we will see if we can stabilize there and how the further possibilities will play out. Many people calling for the complete bottom now, this is a mere speculative tendency and we should keep a cool and rational head to assess the market as best, therefore, we need to see if the bearish signals increase or if we can stabilize on the way down and don't fall for the mere speculative tendency we see so many times these days.
Thanks for watching, support for more market insight and all the best!
The market-conditions are often the real source of truth.
In this manner: FAREWELL
Information provided is only educational and should not be used to take action in the markets.
Note
ANALYSIS UPDATE: The most critical condition with LITECOIN in this situation was the determining price move with which it approached the critical support level.Since LITECOIN could show up with the crucial bullish bounce in the support level it could build up further bullishness and print new higher highs.
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