Litecoin: weekly market analysis (from 7 December to 13 December 2019 on a BTC / LTC pair)
BTC / LTC attentive to the bloodbath
The opening of the monthly candle was definitely below the pivot point, consequently what we saw in the last week appears to be the most classic of retracements which, not having found sufficient liquidity, instead of giving life to a rebound gave birth to a lateral movement; if we were to stop at the 30D chart, the most likely scenario at this time is a break of the S1 with the consequent S2 test. However, let's take a look at the weekly chart as well, here we see that what appears to be a classic bearish continuation pattern, the MACD is still bullish, but does not seem to have any momentum, the parabolic SAR has been bearish for three weeks now . As far as the 1D graph is concerned, the situation becomes more complex, in fact here we see a large divergence of a bullish type on the MACD and for three days the parabolic SAR has returned bullish; this, together with what we see on the ichimoku cloud, inevitably puts us in doubt that we may be facing an imminent inversion, which simply is still premature to be able to observe on wider time frames. What we have to do, therefore, you should know already, since we have been repeating it for days for almost all the alts, to stay out of the market and observe what turn things take.
Weekly forecast
Given that, as mentioned, the wait-and-see approach is certainly the smartest move that can be made on litecoin and given that, as I have been saying for weeks, I am moderately certain that in the end the support will yield and we will have a new minimum, for what we read on the 1D chart we cannot exclude that in the coming days there is a minimum of upward pressure. The most likely scenario in the next 7/10 days is a rebound up to 0.00715BTC, which will inevitably be followed by a retracement and, at that point, the breaking of the support with the start of panic selling; the traders with a fur on their stomach have probably already entered long on litecoin, the more prudent ones may have even already sold since the volumes were indecorously low in the last week, all the others, instead, do well to stay out of the market in this phase. It remains that, from an operational point of view, going long now on litecoin looking for the rebound is an interesting move, also because it allows you to place a stop loss very close to the opening point, however, I repeat, this type of operation is better that remains the prerogative of the most experienced traders and more able to master the psychological and emotional dimension of trading; newbies, people with little experience and those who cannot afford to sustain a loss would do better to stay out of the market at this stage.
Please note: this post is not intended to provide any financial advice regarding how to invest your money, but is for educational purposes only
