Hi friends! Welcome to this update analysis on Litecoin! Let's get right to it! Looking at the four hour chart, you can see that LTC is in a downtrend channel (in blue.) Price has clearly been rejected on multiple occasions at the top of the channel. Also, we can see that it is having some trouble with the 20 EMA (in orange.) Given this apparent weakness and inability to rally out of this downtrend channel, the likelihood of a return to the bottom of the channel is increasing. Currently, the bottom of the channel is right around 28, and it is obviously falling as each four hour period passes. So, if LTC can't rally out of this downtrend channel, I expect a swift decline to the bottom of it.
If you remember from my last LTC analysis, I showed how two of the past six declines after a daily MACD bearish crossover were exactly 15.83%. I made the case that we should then expect to see a fall of at least that much, since that's what history has shown in the recent past. As you can see, a loss of 15.83% (after the daily MACD bearish cross) puts us at about 27.50, which is almost exactly equal to the pivot low of December 27th. As you can see, the downtrend channel is lining up perfectly with that level. Given the fact that we're seeing multiple rejections at the top of the downtrend channel, the resistance of the 20 EMA, the four hour MACD is about to cross over bearish, and the fact that we still have more downside (according to historical price action) to expect after the bearish daily MACD crossover from the 11th — the likelihood of a fall to the 27-28 level is very high.
The only thing that could even begin to change this technical picture, is if LTC rallies above the downtrend channel. That it always possible, but given the numerous rejections that were just printed, it is becoming increasingly unlikely.
PS. Please ignore some of the other background technical stuff. The things on the chart that were not mentioned in this analysis pertain to some currently unpublished views of mine, and other views that I have published recently on the daily analysis.
Be smart. Be nimble. Good luck trading everyone!
I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic! Au revoir.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
hey MPC. I see a lot of traders with the view that the more times a trend line is touched the weaker the trend line gets, where your view, or atleast in this case, seems to be the more times it gets rejected, the more likely it is to fall, as opposed to break the trend line. Curious as to your thoughts on these 2 ways of thinking.
Thanks!
callgirl911
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When you are retarded to listen to someone like MPC, lmao
jonasbrothers3000
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we just surpassed the 20 ema?
Davblitz
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"I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic! Au revoir." Debatable. Name any financial instrument available on here and I'll top you with a more accurate forecast.
lovecrypto
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@Davblitz, This guy has more views than anyone on TV. Grow up and stop with the posts that are negative.
Davblitz
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@lovecrypto, Yeah because its a meme account. The charts speak for themselves. Is it negative to say someone with few view like myself can do better? Its a challenge. Lets see.
Thanks!