Introduction

One of the first altcoins created and also featured in the market is Litecoin (LTC). As its name implies, it has emerged to be “lightweight” and to ensure simpler mining with more operations per second to streamline the transaction process. Today, while a Bitcoin block is processed every 10 minutes, one Litecoin block only takes 2.5 minutes. Litecoin was created in 2011 by former Google software engineer Charles Lee. Prior to that, Charles created the unsuccessful Fairbix currency but served as the basis for LTC.

With the creation of Litecoin, Lee was not aiming to compete with Bitcoin, but to meet a demand that the well-known cryptocommerce gold did not meet. So much so that LTC is technically similar to BTC and considered the silver of the cryptocurrency market. Lee's commitment to his virtual currency to gain strength was satisfactory and Litecoin became one of the best known in the world, being traded by major exchanges.

A curious and controversial fact about litecoin is that at the peak of the price in 2017 Charles Lee sold all his cryptocurrencies saying that "it will not manipulate the price but leave it to the market" but with that has become a doubt in the minds of many investors, does he really think that or no longer believe in his own currency?

Litecoin was up 500% from December 2018 to June 2019, from which time, unlike many analysts predicted the price started a very strong corrective wave that caused the asset not to reach the expected target near the historical top . It turns out that we are now in a moment of great indecision in the market and that is what I intend to bring in this article.

Analysis

Litecoin was following a bullish channel in the first six months of the year, from the break of this channel entered a wedge that brought this strong correction in price. At the moment we had a positive break from this downward wedge, which could be a signal for bulls to regain control of the market.

Note that in tracing a fibonacci in all this appreciation we see this market indecision with the lateralized price between 0.618 and 0.786, this shows us that we have very important zones that serve as fundamental supports and resistances. In short, if the price breaks $ 69 and stays above that price the uptrend has a very strong chance of coming back, if the price breaks the region of $ 48 we have a likely continuation of the downtrend and I, in particular, would only look at litecoin. to negotiate futures contracts.

The 200-period moving average (red) is starting to tilt positively, which means that if it continues at this pace we can see the bulls seeing this as an opportunity to return to the game. Moving averages of 50 (yellow) and 100 periods (brown) show us at the moment a support and resistance for the price, we can see that the price tried to break the support of the moving average of 50 and reversed, now touched the moving average of 100 and fell, so we can also see that in the price decision we can see the intersection of these averages that will tell the bulls or bears how to act.

Looking at the weekly chart we can see the 21 period moving average giving us the direction of the macro trend, when the price is above it we see bull run periods and when it is below bear market. It turns out we don't have just two past bull runs to compare so the patterns may be changing.

Still on the weekly chart you can see similarity in the past of the RSI, where the stochastic came close to zero and then consistently rising higher than we had around $ 130, the MACD shows a steady loss of selling strength, indicating that a cross from Moving averages may be coming giving confidence for bulls to enter the market.

Conclusion

Despite the spectacular high of the beginning of the middle of the year Litecoin is in a situation in a limbo that leaves no clear sign for which direction to go, the bulls and holders experience is that we have altseason coming soon with capital coming in hard for By the altcoins and by fundamentalism we can see strong partnerships that can bring the great mass to litecoin, giving the gas to rise again. When the decision of where litecoin will go is made, I bring another article analyzing cryptocurrency and its main targets and price projections.

Thank you for reading :D