Most traders think a descending wedge is a guaranteed bullish reversal pattern, but they actually break downward far more often than people realize. It is incredibly easy to get trapped trying to catch the bottom, only to watch your stop-loss get hit as the floor falls out. We have all bought a support line thinking it would hold, only to realize we caught a falling knife.
Look at what is happening with $LTC right now as a clean example of this risk. The four-hour chart shows a descending wedge that is completely crumbling, with the price slipping right past the key support level at 45.77. The data shows the bears are firmly in control with a strength score of 17.8, meaning there is very little buying pressure to keep this afloat.
Unless we see a quick reclaim back above the 45.55 level, the technical structure points to a much deeper slide. The next major downside targets are sitting around 41.14 and 40.80, which represents a significant drop if you jumped in too early. This is why waiting for confirmation is always safer than trying to guess the bottom when major assets like $LTC or $BTC show weakness.
Are you guys bidding this dip, or are you waiting for a cleaner setup?
#Litecoin #CryptoTrading #TechnicalAnalysis
Look at what is happening with $LTC right now as a clean example of this risk. The four-hour chart shows a descending wedge that is completely crumbling, with the price slipping right past the key support level at 45.77. The data shows the bears are firmly in control with a strength score of 17.8, meaning there is very little buying pressure to keep this afloat.
Unless we see a quick reclaim back above the 45.55 level, the technical structure points to a much deeper slide. The next major downside targets are sitting around 41.14 and 40.80, which represents a significant drop if you jumped in too early. This is why waiting for confirmation is always safer than trying to guess the bottom when major assets like $LTC or $BTC show weakness.
Are you guys bidding this dip, or are you waiting for a cleaner setup?
#Litecoin #CryptoTrading #TechnicalAnalysis