This week the bears have taken their revenge and the price is now just below what it was a week ago. Centered prediction, then, but the point is to understand if we are in an accumulation phase before a new bull run or if a new low will be touched first; those who habitually follow ValuteVirtuali know that it is precisely this second scenario that I consider most likely, however, since litecoin has been moving sideways for months now, being able to predict which direction the trend will take is quite complicated. So let's try to take a look at the charts immediately and try to understand if something has changed over the last seven days.
Bear-minded BTC / LTC
Let's start as always from the 30D chart, not because something has changed but to highlight once again how the one hanging on the litecoin head more than a cloud is a real hurricane. At best, there is at most room for a doubling of current prices, but nothing more; the cloud will become thinner starting next February, but before that, however, the risk of a heavy thud should not be overlooked. Turning to the weekly chart, what we see appears to be a descending triangle, which was formed from the mid-September peak and which, once the support is broken, could give rise to a heavy dump. Even the 1D graph shows that there is little room for optimism, it has in fact been formed, again on the ichimoku cloud, a bearish crossover of moving averages and the price has frustrated its attempts to get out of the cloud by going to test the edge lower which, until now, has represented the support but which seems inevitably destined to yield the next time it is tested.
Hoping not to exceed with pessimism for me it is inevitable at this moment to be bearish on litecoin; the scenario that I consider most likely is a break of the support in the 0.006BTC area which will be followed by a heavy dump. Better, therefore, to be cautious with this currency, even if we cannot rule out the possibility of a rebound in the coming days in principle the tendency for LTC still appears to be markedly bearish; we therefore remain outside the market and wait patiently for the situation to be clarified before assessing the possibility of opening a position on litecoin.
Please note: this post is not intended to provide any financial advice regarding how to invest your money, but is for educational purposes only