Litecoin: weekly market analysis (from January 4th to January 10th 2020 on BTC / LTC pair)
Today, the price is only slightly lower than it was a week ago; the feeling, at this moment, is that the price will return once again to the 0.006BTC area and then give way crashing, breaking the support and going to mark a new low.
Having said that, however, let's immediately take a look at the graphs to better understand how the situation has evolved in the last few days.
BTC / LTC the scenario is still bearish
Let's start by focusing on the two fundamental price levels, which once broken will see the trend take a clear direction; the situation, from this point of view, is extremely simple since we have the last maximum (0.006BTC) which acts as resistance and the last minimum (0.0055BTC) which acts as support. So what we have to do is stay out of the market until the resistance is broken, before then it makes no sense to go long on litecoin.
As regards, however, the 30D time frame in recent days we have had the opening of the new candle of the month, again below the pivot point, so we can already assume that we will have a fair bearish pressure during this month; moving on to the weekly chart and setting the bollinger bands we immediately focus on what could prove to be a bad bull trap. The price, in fact, touched the lower edge of the bands, which are particularly narrow at the moment to demonstrate the low volatility, so what could happen is an upward retracement up to the midline, with the price that could then be heavily rejected.
It is difficult to say today how things will go, also because the MACD is still bullish and could find new momentum and being very close to the minimum touched in January 2017 I would not be surprised to see a bull run start; the situation on the 1D chart is clearer, at least in the immediate future, here the clouds of ichimoku show us that we are in a still strongly bearish trend in which the most likely scenario for litecoin is a breakdown of the support.
At this moment, predicting what will happen to litecoin is particularly complex, therefore the best advice you can give is to stay out of the market; given that we have two ideal price levels to observe, let's keep an eye on them and start evaluating the possibility of going long only in the event of a clear break in the resistance.
Personally this is not the scenario that I consider most likely, however it remains possible therefore better to continue to follow things so as not to risk being left out if litecoin ends up getting into a bull run sooner than we expected.
Please note: this post is not intended to provide in any way financial advice related to how to invest your money but it is purely educational