Litecoin / BitcoinShort
Hurt Litecoin ( LTCBTC ) takes on a painful journey down south
Updated
Hello Friends,
Here comes my third and final chart for the day.
This is yet another simple yet informative chart for you on the daily frame with explanation of what the chart shows.
If you have seen my previous chart on Bitcoin ( BTC ) on daily frame, the path is clearly downward. (Ref: https://www.tradingview.com/chart/BTCUSD/GdF6kvIk-MA-200-Killed-BTC-Bottom-Revealed-in-a-Simple-Chart/ )
We all know, when BTC goes down it takes everything else down with it, a major reason why Litecoin will likely fall down apart from the weakness visible in LTCUSD chart.
The LTCBTC chart, however, shows further signs of weakness in medium term (spanned over many weeks) with a death cross of 50 MA and 200 MA and rejection at MA 200 in the first week of June.
Classical charting pattern wise, it formed a descending triangle (marked in black). The descending triangle is a bearish formation that usually forms during a downtrend as a continuation pattern. As has been evident in the chart, it has broken down and moving south a day after testing the bottom trend line of the triangle for the third time.
As the chart suggests, MA 200 acted as resistance for 12 long days before rejecting the price and a death cross of 50 MA and almighty MA 200 has happened. They are going to act as resistance on the journey up. Price will eventually go down since that is the path of least resistance.
Medium term view: Next major support is wayy down at 1.272 rectracement at 0.008866 level and below that at 1.414 level further down at 0.007060. They are the likely destination. It might take many weeks though.
Short term view : We are currently seeing a small rally on day candle. It can continue till bottom of the triangle. If that is breached and confirmed, God and BTC willing, a rally till 20 / 50 MA / 786 retrecement can't be ruled out in short term (few days to a couple of weeks max).
However, don't take your eyes off from the bear market.
Thank you.
Feedback welcome.
Here comes my third and final chart for the day.
This is yet another simple yet informative chart for you on the daily frame with explanation of what the chart shows.
If you have seen my previous chart on Bitcoin ( BTC ) on daily frame, the path is clearly downward. (Ref: https://www.tradingview.com/chart/BTCUSD/GdF6kvIk-MA-200-Killed-BTC-Bottom-Revealed-in-a-Simple-Chart/ )
We all know, when BTC goes down it takes everything else down with it, a major reason why Litecoin will likely fall down apart from the weakness visible in LTCUSD chart.
The LTCBTC chart, however, shows further signs of weakness in medium term (spanned over many weeks) with a death cross of 50 MA and 200 MA and rejection at MA 200 in the first week of June.
Classical charting pattern wise, it formed a descending triangle (marked in black). The descending triangle is a bearish formation that usually forms during a downtrend as a continuation pattern. As has been evident in the chart, it has broken down and moving south a day after testing the bottom trend line of the triangle for the third time.
As the chart suggests, MA 200 acted as resistance for 12 long days before rejecting the price and a death cross of 50 MA and almighty MA 200 has happened. They are going to act as resistance on the journey up. Price will eventually go down since that is the path of least resistance.
Medium term view: Next major support is wayy down at 1.272 rectracement at 0.008866 level and below that at 1.414 level further down at 0.007060. They are the likely destination. It might take many weeks though.
Short term view : We are currently seeing a small rally on day candle. It can continue till bottom of the triangle. If that is breached and confirmed, God and BTC willing, a rally till 20 / 50 MA / 786 retrecement can't be ruled out in short term (few days to a couple of weeks max).
However, don't take your eyes off from the bear market.
Thank you.
Feedback welcome.
Trade closed: target reached
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