If you take a look at the daily chart of litecoin things do not look great from a technical standpoint. I hold a long-term position and even added on the last bounce even though on the short term things don’t look bullish.
So I ask myself the question…
Why am I Long This Chart Right Now?
Head and shoulders patterns I feel have become less reliable than you would normally assume, but that doesn’t mean we can ignore them.
Look at the chart…..pretty clear head and shoulders top followed by a break down and then rally to the neckline around 100-105 which then failed and here we now have price floating in the middle of no man’s land.
We can easily go back down to text the recent low of 77 and possible lower if it were to fail. On the other hand bulls can step in a buy out of nowhere (as happens in crypto from time to time) and push price to test that neckline again and possible make the pattern moot.
The point is…
There is no real clear edge….and if there is one then it is biased to the downside.
The funny part it – I don’t have this trendline drawn on the chart but you can see there is an uptrend starting in April going into July that has been broken and then tested on that last little bounce only to fail.
Can you see the uptrend line I am talking about….try to draw it on the chart if not. 😉