Welcome to this analysis about Litecoin, we are looking at the 4-hour timeframe perspective. Litecoin is forming an interesting formation these times that has the potentials to show up with further dynamic breakout-conclusion when Litecoin manages to develop the right price-actions, therefore I detected all the important levels and likely outcomes we should consider here.
As when looking at my chart we can watch there Litecoin has formed this initial descending-channel-formation marked in my chart in orange with black boundaries, furthermore, Litecoin has developed this coherent wave-count within the formation with the waves A to D already formed and the wave E to form within the next times, this wave E will finalize the whole wave-count and will run directly into the major breakout-origin-cluster marked in my chart in blue where Litecoin has some solid supports lying consisting of the lower boundary of the channel, the second ascending-trend-line in blue and the 135-EMA in red, all these levels indicating a bounce to the upside to establish when Litecoin moves into this zone and when this bounce is strong enough to move above the upper boundary such price-action will complete the formation as a bull-flag and activate upside targets further ahead.
Currently, Litecoin is one of the currencies with a more bullish edge, this is important to distinguish as not every currency has this, there are also currencies with a more bearish or sideway formational structure developing. For now we need to elevate how Litecoin is proceeding within these movements before taking the final conclusions and moving in the proper direction.
In this manner, thank you for watching the analysis, have a good start into the New Year 2021, many thanks for all people supporting, all the best! "Trading effectively is about assessing possibilities not certainties."
Information provided is only educational and should not be used to take action in the markets.
Thank you for this. Looking at the 1H and 4H RSIs, I think it might go down to 117-120$, at the first ascending trend line, where the 0.50 Fib also is, before going back up. Down to 112$ (at the 0.618 Fib) would be a great entry, but the price has already touched the 0.328 Fib multiple times, and I wonder if it can push much lower than that.
VincePrince
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Post your comments, questions, and ideas about LITECOIN here.
jayg39487
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@VincePrince, what do you believe to be a good entry point for Litecoin? on a long