Litecoin (USD) at a turning point: strong arguments for bulls and bears

Litecoin (LTCUSD) Ichimoku daily chart

Above: Litecoin (LTCUSD)

Litecoin continues to trudge up, following the movement of Senkou Span B almost to the tick. I have a hard time viewing Senkou Span B and Litecoin price movement as either bullish or bearish. It’s very strange behavior. When I look at the Litecoin chart all I see is confusion, indecision and no idea what the hell it is trying to do. There’s much the same reason to be bullish or bearish here, but the proximity to a breakout favors the bullish side of the market. Litecoin is simply closest to the conditions that an upward move fulfills than a downward move.

In order for Litecoin to turn into a complete angry bull monster and top up higher, it needs to close around $ 205 to $ 206. That would bring the price above the cloud and the lagging span above the candlesticks. In addition, Future Senkou Span A would likely cross over Future Senkou Span B. Another reason the bullish side is preferred is% B. The% B has crossed above 0.8 while the Relative Strength Index remains below 60. This means that any outbreak has a high probability of being sustained and permanent. But cops shouldn’t be overconfident here.

The bearish side of the trade still exists. We’re going into the weekend and that’s when the market likes to mess around with people. Liquidity and participation are drying up, and it is easier for the big players to move the market in the desired direction. As a result, a hidden bearish divergence remains between Litecoin’s candlestick chart and the Composite Index. Likewise, the Relative Strength Index is struggling to break the first overbought level in a bearish RSI setting (55). There is also solid short-term resistance with the Senkou Span B and the Kijun-Sen at $ 188. That will be the level to watch over the weekend.

If Litecoin doesn’t break out and bulls show a lack of trying, sellers are likely to step in to take over. First, the bears need to push Litecoin below the 50% retracement and Tenkan-Sen to close below the previous swing low of $ 138. From there, it should be an easy journey for the bears to push Litecoin into the $ 100 area.

banner

advertising

Save money on your currency transfers with TorFX, voted International Money Transfer Provider of the Year 2016-2020. Their goal is to connect customers with highly competitive exchange rates and uniquely dedicated service, whether they are trading online or by phone. Find out more here.

Comments are closed.