Chart Key
Light Purple Line - Top of Channel starting late March
Red Dashed Line - Bottom of Channel starting late March
Green Dotted Line - Average 100 Day EMA through all data points - this just shows the average sloping increase from previous data.
Litecoin is showing a challenging recovery after the recent all time high(ATH) on Sept 1st.
Downward indicators
The reasons for the recent downtrend are multiple
I believe LTC/BTC/ETH will hit another low before heading upwards. This is just part of the natural correction before coming back into the standard upward channel. I don't believe China can take the blockchain down, despite LTC losing 50% of it's market cap in the past 19 days, I can see it is rising again, and we're back where we were before the recent all time high of $99. (see this image) https://drive.google.com/open?id=0B_EUyJXjIdzFb1lBTWEzUUIydnc
Notice the weekly volume according to BSP_Xel Volume indicator. This indicator at the bottom of the image shows sells outpace the buys, and the sell volumes are growing.
Light Purple Line - Top of Channel starting late March
Red Dashed Line - Bottom of Channel starting late March
Green Dotted Line - Average 100 Day EMA through all data points - this just shows the average sloping increase from previous data.
Litecoin is showing a challenging recovery after the recent all time high(ATH) on Sept 1st.
Downward indicators
- MACD has crossed over blue line a while ago on Sept 9th at weekly and daily charts.
- Daily and weekly price action has continued on a downward slope, show slight signs of recovery, but always a dip after.
- Sales volume has surpassed buy volume and is growing
The reasons for the recent downtrend are multiple
- The $99USD ATH was quite above the previous channel. $46 Low to $74 high would have been normal channel ups and downs. We reached a $99USD high and so we stand to see a strong correction/consolidation. (See chart)
- The bears/whales rushing in to take profits after the recent surge - Skimmers, Scalpers, Swing Traders, etc ... many got out after the surge in the 70-85 range.
- The recovery has been slowed by Chinese markets closing and/or being banned from trading by Peoples Bank of China (PBOC). According to the WSJ, regulators have decided on a "comprehensive ban on channels for the buying or selling of the virtual currency in China" - www.wsj.com/articles...l-trading-1505733976
I believe LTC/BTC/ETH will hit another low before heading upwards. This is just part of the natural correction before coming back into the standard upward channel. I don't believe China can take the blockchain down, despite LTC losing 50% of it's market cap in the past 19 days, I can see it is rising again, and we're back where we were before the recent all time high of $99. (see this image) https://drive.google.com/open?id=0B_EUyJXjIdzFb1lBTWEzUUIydnc
image