Litecoin Bearish Wedge, or is it a Trap
Updated
I have seen many people looking at the big bearish wedge of Litecoin, I understand why because it almost has the perfect shape. However, there are a few things to look at before simply assuming it's a real one. First of all, the volume picture is not really confirming the wedge, it's dropping but still high. Also the start of the wedge, not easy to say where that should be
Another factor now, for now the most important one since we are moving sideways the past days. When a wedge breaks and the price move sideways for a long time, it usually says the market has other intentions. Now we had that drop earlier today, which indicates the wedge might be real. Assuming this is all just a retest again of the resistance of the wedge. But in this market, stop hunts happen all the time to get orders filled. So i don't know which one it is for sure.
What i can say is, the longer we move sideways and stay above the 60ish, the bigger the chances become for a move up. If the 60ish breaks, we should expect a move down again, with maybe that green zone around 58 being a second support level. If we drop inside of that big channel on the left we have to assume we can test the support again of that channel. So even if we drop, the 52/54 zone is still a key level for the mid-term.
Previous analysis:
Another factor now, for now the most important one since we are moving sideways the past days. When a wedge breaks and the price move sideways for a long time, it usually says the market has other intentions. Now we had that drop earlier today, which indicates the wedge might be real. Assuming this is all just a retest again of the resistance of the wedge. But in this market, stop hunts happen all the time to get orders filled. So i don't know which one it is for sure.
What i can say is, the longer we move sideways and stay above the 60ish, the bigger the chances become for a move up. If the 60ish breaks, we should expect a move down again, with maybe that green zone around 58 being a second support level. If we drop inside of that big channel on the left we have to assume we can test the support again of that channel. So even if we drop, the 52/54 zone is still a key level for the mid-term.
Previous analysis:
Note
It has become clear, that alts simply don't want to move up. With each sideways movement of Bitcoin they start to drop already. This is almost the same as July 2018, where Bitcoin was pumped to 8500 but alts were dropping during that rally. So TA won't work as it should IMO, bears will be mostly in favor when it comes to alt coins. I think i will only look at Bitcoin from now on, until we break the 3930/4100 range. So i would be very careful with longs on alts coins.The range of LTC seems to be valid, but a break upwards will probably show small bullish movement while a break downwards will probably be a dump.
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