Litecoin: weekly market analysis (from 18 January to 24 January 2020 on BTC / LTC pair)
In this analysis, we will mostly try to understand together what can be a good entry point to go long on this coin, since the feeling is that the last increases seen are nothing more than the beginning of a reversal phase.
BTC / LTC is not yet late to make a profit
At this moment there is no sense wasting time with the higher time frames, we know very well what is going on at the litecoin price so we will focus our analysis on the four hour time frame; yesterday we saw a first retracement that went to bounce on the EMA100.
The most likely scenario sees the price going to break against the EMA20, the rebound will end here and, in the short term, litecoin will return to bearish; observing the 4H chart it becomes very easy to identify the support in which we have to try to buy, it is located substantially in the 0.006BTC area, in correspondence with that price range which, previously, had represented the resistance.
Let's arm ourselves with the necessary patience and wait calmly not only for the test of this price range but also for the consequent reversal pattern, always on the four-hour time frame, which will signal the recovery of the bullish tension.
If, for a longer period of time, let's say the next six months, I am definitely optimistic about the fate of litecoin in the immediate term, it is not the time to buy; what we have to do, as mentioned, is to wait for the price to return to the 0.006BTC zone and, subsequently, make sure that this support holds up before opening a position.
In this way we not only reduce the risk to the bare minimum but also optimize our profits by making sure we buy at the lowest possible price.
Those who were still doing hodling can still still evaluate the possibility of taking profit, so as to accumulate even more coins, or they can remain long waiting for the price, as I hope (because as we always say in trading there are no certainties), receive a new bullish push from the bulls as soon as it touches the resistance in the 0.006BTC zone.
Please note: this post is not intended to provide in any way financial advice relating to how to invest your money but has purely educational purposes.