Next Bounce at $137
Hello crypto people. As you can see there was a false breakout after all. The problem is that when the first breakout occurred at around $115 LTC, the breakout was not organically. In my opinion a small group of people or institutions just pumped the price with high volume of buy orders.
It is dangerous when this events happen in a bear market because since the market leverage is dependent of that small group of people or institutions that pumped the price. If they decide to take profits, the market support is lost and is when false breakouts smash people’s faith and pockets.
Let’s get right into it!!!
(#1)I previously highlighted a bear flag that formed in the $160 LTC levels which successfully dumped the price to the levels we are now. Now, in the 1H graph there is a formation of a huge bear flag, which contains inside of it the previously bear flag. This is a bearish indication as a whole.
(#2) For this graph I decided to use volume indicators, and as you can see, net volume is in the 0 levels, and volume is not increasing, which would make it even harder to break through the high resistance levels around the $160 LTC.
(#3) MACD has failed to bullishly cross over, which combined with low volume indicates that a bullish crossover will not succeed at the current levels.
(#4) I am using just 1 EMA indicator and is the EMA 50! As you can see, EMA 50 is indicating bearish trend and a bounce down every time we consolidate close to it.
This are my 4 indications that we had a false breakout and that we will keep going down since the market lost leverage as a whole. However I still make profits in bearish markets just by buying in the bounces! So here are the Strategic Bounce Sections.
Bear Flag Target
$137 LTC(Historical support level)
It is dangerous when this events happen in a bear market because since the market leverage is dependent of that small group of people or institutions that pumped the price. If they decide to take profits, the market support is lost and is when false breakouts smash people’s faith and pockets.
Let’s get right into it!!!
(#1)I previously highlighted a bear flag that formed in the $160 LTC levels which successfully dumped the price to the levels we are now. Now, in the 1H graph there is a formation of a huge bear flag, which contains inside of it the previously bear flag. This is a bearish indication as a whole.
(#2) For this graph I decided to use volume indicators, and as you can see, net volume is in the 0 levels, and volume is not increasing, which would make it even harder to break through the high resistance levels around the $160 LTC.
(#3) MACD has failed to bullishly cross over, which combined with low volume indicates that a bullish crossover will not succeed at the current levels.
(#4) I am using just 1 EMA indicator and is the EMA 50! As you can see, EMA 50 is indicating bearish trend and a bounce down every time we consolidate close to it.
This are my 4 indications that we had a false breakout and that we will keep going down since the market lost leverage as a whole. However I still make profits in bearish markets just by buying in the bounces! So here are the Strategic Bounce Sections.
Bear Flag Target
$137 LTC(Historical support level)
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