Hello friends! Welcome to this highly anticipated update analysis on LITECOIN! As you know, I don't normally do multiple analyses on one coin in a single day. However, today is special for LTC, and a lot of people want to see what's going on. Before we get into the chart, though, I want to talk about the fork. There were a lot of people saying it's this, it's that, it's a scam, Charlie Lee said this, blah, blah. For the life of me, I can't understand why everyone let's social media rumors convince them. It's like nobody does their own research, and then they just blab about the stuff that the next misinformed guy told them. Charlie Lee did say it was a scam, but he never said that the fork wouldn't happen. Regardless, the fork occurred earlier today on the 1,371,111th block, in the LTC blockchain. The fork subsequently created Litecoin Cash, which will utilize the SHA256 mining algorithm. According to the official LCC website, the new proof-of-work hashes "enable a new use for previously obsolete Bitcoin mining hardware." Beyond that, it will have a max supply of 840 million coins, as well as lower transaction fees, compared to Litecoin. As I said earlier, it opened with a price of $1.42, and traded as high as $1.71, and as low as $0.95. Currently, LCC has skyrocketed to an even higher high of $2.60. So let's look at the chart and see how LTC responded.
On the four hour chart, we can see that there has been little movement in LTC. Personally, I was hoping that the Earth would shake, but the volatility has been muted. If we look at the action inside of the flag, we can see that the price action appears to be building a head and shoulders pattern. Also, price action has broken below the midline of the channel, as well as the 20 EMA (in blue.) This is a particularly comforting thing to see, especially as the wedge closes on the price action. So we now have a mixed bag of signals. We have a bull flag, that has a head and shoulders pattern building inside of it. Perhaps we do see a breakdown, and a subsequent test of the 50 EMA (in orange) or the bottom of the channel. The truth is, I don't know. Nobody knows. But that's what analysis is all about. We assess the market, and identify a pattern. Then, we wait for the breakout to occur, and then we place the trade. That's why I always tell you not to trade until you see the breakout. I practically shout it from the mountaintops! Well, there aren't any mountains here in the great city of Houston, but you get the picture. You could have the biggest bullish flag you've ever seen, and then you get all giddy and excited and place your trade, thinking it will break out for sure, and then it breaks to the downside, in a violent and disgusting way. Makes your heart sink into the pit of your stomach, doesn't it? Well, at least you have your dear friend Magic, to guide you through the fog. Stay focused my friends! Watch for the breakout. Up or down. Because nothing is certain in this market. With that said, the bias remains to the upside. We remain in a new uptrend channel, in a big bull flag, and we've just broken above the blue tunnel of death. So, yeah, we're choppin around in the flag, but things are still looking up. Even if this thing breaks down, there is a lot of support just below us. The 50 EMA, the 61.8% retrace, and the bottom of the pink channel, to be exact. I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic. Au revoir.
This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, like, and share on social media. Good luck trading everyone!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
My name is Carlos Matos i come from New york city New York.
I recently did a show during an awesome crypto business ceremony.
I red that there was going to be a bitconnect coin fork, which will create a bitconnect cash coin.
My wife tells me it's a scam, but i told her hm hm no no noooo.
Do you think i can safely invest 25.000 dollars on this bitconnect cash coin fork.
lmahanand
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@Giorgioversace, Bitconnect is a scam and due to govt crack down it's price has fallen to single digit in USD from $400. Better to put your hard earned money to good projects that are actually solving real world problems rather than ponzy schemes like bitconnect.
Felkroth
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@lmahanand, I have a golden opportunity for you! You should totally invest a lot in SysARC Asyncronous Security Money (SARCASM), I hear it's going big soon!
I recently did a show during an awesome crypto business ceremony.
I red that there was going to be a bitconnect coin fork, which will create a bitconnect cash coin.
My wife tells me it's a scam, but i told her hm hm no no noooo.
Do you think i can safely invest 25.000 dollars on this bitconnect cash coin fork.