Litecoin: weekly market analysis (from December 28th to January 3rd 2020 on BTC / LTC pair)
As it turned out, therefore, we can only wait to see if the price will mark a new low, which I personally consider the most likely scenario, or if the current fall will be interrupted earlier, which would represent a signal important of a possible reversal. Having said that, however, let's take a look at the graphs, more than anything else to make sure that the reasoning we have followed in recent weeks is still valid.
BTC / LTC is time for a new low
Observing the time frame at thirty days and setting the pivot points, the first sensation we get from it is that the bottom, as regards litecoin, is in correspondence with the S3, in the 0.004111BTC area; if we also observe the bollinger bands we realize that the S3 is very close to the lower edge of the bands, so we get the impression that in the price range between 0.0032BTC and 0.0041BTC litecoin should enter again in an accumulation phase, followed by a new bull run.
Looking at the weekly chart, this impression is further confirmed by the fact that the increases of the last candle have already been almost completely dried up, drawing a classic gravestone doji; a bearish parabolic SAR and an ADX that seems to suggest that bear pressure could get much stronger within a week or two at the top of the bearish scenario.
The markedly bearish picture is also confirmed by the 1D chart, here we immediately see that if there is not a rebound in even a short time the parabolic SAR will return bearish; the same thing goes for the MACD which seems to suggest that we are on the threshold of a new heavy dump.
It is true, to conclude, that the order book is much more deranged from the side of those who want to buy than from those of those who want to sell, however it is enough to set the ichimoku clouds to quickly receive confirmation that we are still in a trend markedly bearish.
Weekly forecast
Litecoin is definitely a currency to be observed carefully in the coming weeks, if only that we are now very close to a price range that could offer very solid support on which to bounce and reverse the current bearish trend; in a short-term perspective, however, this currency still appears markedly bearish so there is no need to get bullish fantasies.
Much better to stay and watch the situation, keeping our liquidity aside for better times.
Please note: this post is not intended to provide in any way financial advice relating to how to invest your money but it is purely educational.
