Will LTC keep going bullish or starts retrace
In this particular video, what I want to focus on is one crypto. Which we haven't mentioned that much in these videos for some time, but I want to bring your attention to it because it's quite interesting now, as you probably noticed the big news story of the last, well the last few days have been just popping in the price of Bitcoin as you can see here. However, notice one interesting thing that the cost of bitcoin couldn't get much going above the 55 daily moving average. That's a Magenta line you see on my chart, so it did have a pop, very nice one as well, but it stalled at the 55 ema on the daily timeframe. It got rejected from there as you can see there, so that level has acted as resistance on bitcoin. But of course the new story hasn't been so much about Bitcoin, but actually, more on light coin light coin search has been tremendous been, um, quite a significant one as you see here.
Now, by the way, I should say whenever I make one of these videos and whenever I mentioned a pop into the price of something like a Crypto, I often get comments from people out there who are not familiar with our videos, and there, they don't know. Some videos are mostly chart based, our technical and I often get some comments. Usually not very lovely comments saying why don't you talk about the new story behind what's happening here. Okay. So as I'm sure you appreciate guys that were not into news narratives, we keep news events and news narratives for the masses. Uh, but of course if you, if you want me to mention it, I'll suggest it. Yes. There have been some theories that are happening across the media that you can, you can read it for yourself if you want to go ahead and if you are interested in that kind of stuff.
Yes. There are all kinds of theories going around. For example, it was men, Bill Wimble and all that kind of stuff. Again, as professionals and chart analyst, we're not interested in news narratives, but of course, if you are interested in, please go ahead and knock yourself out. Um, and again, one of the reasons why we don't pay attention that much to the fundamentals and you know, the news narratives are not the, it's not because we hate them, but mostly because of the fact that you know, the good old a moment, one of my favorite traders of all time is Bernard Baruch. And he famously said, show me the charts, and I'll tell you the news. Let me repeat that. Show me the charts, and I'll let you know the story, which is why the great traders of our time, people like Paul Tudor Jones, people like Richard Dennis, they all look at chart analysis.
So what exactly is going on here on this chart of light coin? Well, let me just actually make this very clear that despite this surge in light calling and despite the fact that light coin right now is kicking the behind of Bitcoin, if you compare light coin against BTC LTC BTC, you can see that light coin right now is outperforming, is outperforming Bitcoin A. I always love looking at these charts. Look at this, by the way, guys, when the pulse signal fired right here, the beginning of February, this pulse fire to the upside, right? Their price of bitcoin. I'll be a part of the price of light coin surged. You can see right there and the momentum of this as because he pushed us higher as well, but going back to the chart. That light coin itself, notice what's happening on the chart of light coin, uh, and saw something interesting here as Ltc usd here on this chart, first of all, light coin has stalled at the 200 daily moving average.
That's the Green Line you see here on my chart. So stalled at that level so he couldn't get past that resistance. The second thing I want to mention here is that also come to a level which is equally important, and let me see if I can get this on my chart. I believe we've also stalled at the FIBONACCI retracement level. Just went to the FIBONACCI retracement tool and then we'll do a FIBONACCI retracement from that high to this low. Yeah, so it's more or less hugging. That's 61.8 percent FIBONACCI retracement. The critical level on the charts. Um, the question is can it hold above this level or is it going to fall below it? The balance of probability suggests that it is much more likely for this level to hold resistance. And for light coin to fall back below that 61.8 percent retracement.
So guys, to be clear, there is at least right now, there are at least two levels of significant resistance. The 200-day moving average and the 61 point eight percent FIBONACCI retracement a weekend performance, but I think it's a good idea to also to also look at the charts that exclude weekend performance. Why? Because often weekend movements are driven by Bot and algorithmic activity, and as we know, bots and algorithms activity often corrupts the price movements enough to often does not show the correct, accurate picture of the charts in the market. And secondly, a lot of the volume is not present during a weekend, so most of the volume is present during the Monday to Friday session, but not as much during the, uh, the weekend session. So it's important to always keep an eye on what's happening on the charts and exclude weekend data, like a chart like this, by the way, you will see on also on my chart of light coin the wave count.
So as you can see here, a wave three and most likely formed the bottom of wave three form most likely December. And this pop you've seen here, this movement to the upside is a most likely way for, um, I, I understand that, uh, the price of bitcoin has gone slightly above these previous levels during the weekend. But the bottom line is this, that is most likely start, most likely, still a part of a way for movement. All right. And in fact, it's unlikely to be the start of a new uptrend most likely to start, most likely part of the way for. All right, so this is the chart of light coin here. This is the chart that includes, we can get data. So in other words, if wave three formed here in December, then this pop you've seen here, this movement, this is part of the wave for alright, wave for all right.
The smart way you should try to start Bitcoin trading with small amount of money
And this is likely to be the ABC. Alright, so a, b, c. So this pop, this search you've seen in the last few days, whatever the new story is, we don't care about the latest stories. The bottom line is that as far as the charts and technicals are concerned, as far as the, um, the psychology of the price is concerned that we're dealing with actually most likely a way for correction, which means what? Which means this is a level where very likely we're going to see sellers taking control. Okay? So what I'm looking for are a situation where sellers will probably take control. Bears will probably take control. By the way, take a look at the weekly charts off light coin as well. Uh, always keep an eye on where the weekly levels are. And let me show you what I'm looking at here. Notice that you will see that in fact, light coin has hit.
Yeah, it's hit the 21. Moving average, the 21 weekly moving average, which is often a strong level of resistance on the charts. All right? Uh, I, by the way, let's take a look at this chart here on Mt. Four. I'm on Mt. Four, where we exclude we can get data. You will notice something interesting that in fact, we've hit the trendline. Okay? Notice has hit that trendline resistance. This is running through here. If I go on a weekly timeframe, pretty much the same picture. Okay? Notice a very similar view. Uh, go back over here. It's hit, hit the trend line. Okay. And got rejected from there. Now I know over the weekend, and it went slightly toward that trend line. Uh, it might have breached it, but the bottom line is weekend activity is often driven, driven by bots activity. So it's not organic human activity, so I don't put much faith into it.
The bottom line is, what I'm interested in is what's happening in the Monday to Friday session as well. Uh, one thing I should mention here is this on light coin, we've got a pulse signal forming on the weekly time frame. Put it this way, if this pulse on the weekly time frame fires eventually to the upside, which is less likely, uh, well, if the pulse flyers to the upside, very likely are going to surge into a potential an uptrend. So in other words, if this pulse fires the upside in light coin, very likely we're dealing with a bottom here, uh, in light coin. But if this shoots to the downside, okay? Which I think is more likely if this buyers, the downside, very likely are going to see further downside pressure in the price of light coin. Okay? To the downside. So that's very interesting indeed happening here on light coin.
Uh, eventually, I think actually, one more chart I want to show you is this. Take a look at. This is the sigma chart. This is the sigma chart of light coin, and what's interesting about this is that we've got some strong level of resistance. The red area is the red sigma zone, and this is the level of price often gets rejected. That's under 43 to 45 levels here. Forty-three to 45 levels going to get ahold resistance for light coin and very likely are going to see rejection from those levels back down. So the bottom line is I predict, I don't think this surge and light cone is anything to get excited. I feel very likely bears will take control of light coin at some point and push it down back towards the previous lows for this way, to complete and for the way five eventually deformed.
And this, by the way, one more thing I should I should mention when ripple had a massive surge about four months ago, is the video I put out there is a surge in the Crypto, a dangerous trap I was talking about ripple at the time. So you may remember, uh, go to the daily timeframe chart. Okay. So back then, this is what was happening in Xrp, sudden massive search in ripple xrp and I said, time, look, this is most likely a bull trap. Uh, in other words, most likely this is going to. This is going to fail. I remember at the time, many folks, I think most likely Xrp fans, I'm sending you a lot of hate mail, would it nicely. They said no, I'm wrong, and that XRP is going to surge messily a higher. Well, as you can see, xrp managed to fold from those levels back down to its previous level.
So, um, those of you agreed with me, that this moved the movement in Xrt, most likely it was a pump and dump and a bull trap. We were correct on that point. Uh, I think most likely is what we're dealing with here in light coin as well. We should be cautious about jumping to any conclusions about this. But look, I'm going to keep an open mind. Alright. One thing we never do in these situations has a closed mind. I'm going to keep an open mind, but I also want to make sure I mentioned this. Professional traders, professional investors never fall in love with their investments. Uh, one of the best sayings in the trading industry is fall in love with your neighbor's wife, but don't fall in love with your investment — big Mistake. So always keep a professional objective, opinion and indeed keep yourself goal, impartial when it comes to any sorts of crypto or stock or whatever.
Alright? Never fall in love with your investment, never falling in love with your altcoin or crypto. If you fall in love with your alt calling or Crypto, what most likely is going to happen is you'll become blind to the risks. Just like for example, the people who bought light coined back in 2017 when the price of light coin hit $360. If those people who bought light coin back then I thought about the risks, about the fact that it could be a bubble. And this bubble is going to burst eventually. Uh, of course, they didn't do that. Alright? So that's why it's essential. Never Fall in love with your crypto.
All right guys, I hope this video helps and if it has, please give it a thumbs up. And also please subscribe for future videos if you haven't already subscribed. Thanks so much indeed. Bye.