Litecoin: weekly market analysis (from 11 January to 17 January 2020 on a BTC / LTC pair)
BTC / LTC is time to take profit
We start as always from the 30D chart, here we clearly see how the big hikes of the last week brought the price to test the R3; at this point, as they say, there is no tripe for cats.
It is almost unthinkable, in fact, that the R3 can be broken and even if this happened the price could not go up much.
Turning to the weekly chart we immediately notice that the MACD has finally regained new bullish momentum, however, the most probable thing is that now the profit taking and the expectation of a retracement that allows to accumulate LTC at a lower price leave a little of space for bears to take the initiative.
Turning to the 1D graph, it is sufficient, however, to set the ichimoku clouds to ascertain that, despite the strong increases in the last few days, the delay line, unlike the price, has not yet re-emerged beyond the clouds and this, as we know, does not it only weakens the purchase signal.
Whoever was thinking of holding litecoin, infected by the wave of enthusiasm that reigns on social networks, would do well to change his mind and take profit; as mentioned, in fact, at least until the new candle of the month opens, there are no extremes for new noteworthy increases.
The ideal, therefore, is to take profit now to try to return to accumulate at lower prices than the current ones; the most probable scenario, in fact, sees a slow retracement in the 0.006BTC zone, that is, in correspondence with the price range that we previously identified as acting as resistance and that now, instead, has turned into support.
Those who have not yet bought would do well to seriously consider the opportunity to do it immediately after the pull back, which as mentioned appears inevitable, because the feeling is that by now litecoin is ripe to reverse.
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.