LiteCoin (LTC/USD) Analysis December 6, 2017
Governments are planning to set up their own crypto-currencies. We already have crypto-rubble in Russia and in Venezuela we have Petro. In the US BTC is being given a stamp of approval by the CME and the CBoE while the CFTC already giving the green lights of BTC futures contract.
Well, you may ask. What happens LTC? Look at it this way, the structure of this coin is designed to provide a cheaper alternative to BTC. LTC achieves this by increasing the number of transactions making it suitable for merchants who desire transaction volumes. With more soft hearts, crypto-coins demand will balloon and it’s no brainer, LTC will be worth a fortune later.
Technically, we can see the weekly chart is bullish because of those higher highs and a strong buy signal. Additionally, LTC price action is aligning itself along the upper BB.
As reiterated before, this means there is strong buy pressure and this can be verified by looking at what LTC price action did to the first resistance line and August’s highs at $70. There was a strong surge leading to that strong candlestick by week ending November 19.
In the daily chart, we easily note that price action is moving along an ascending channel.
At current prices, LTC is oscillating along an area of strong resistance and a possible double tops suppose LTC trickle down. On November 29, a false double bar reversal pattern was confirmed at $100 resistance level and even though we might have sold off because of that stochastic sell signal, prices continued to appreciate.
It is now testing the upper limit of our channel and as per the momentum in the weekly chart, LTC might end up blasting through this limit mainly because of that stochastic buy signal.
Bullish momentum is waning out in the 4HR chart. We can clearly see this if we consider the behavior of price action over the last 2 weeks or so especially after that break above on November 16.
The main support line has been the 20 period MA with price action moving closely along the upper BB as bulls took over. Currently, we have lower lows relative to the upper BB as LTC consolidate along the recent highs of $100.
The main support lines that we should be watching are the minor trend line connecting November 12 and 30 and the middle BB. Should the latter be breached chances of prices testing support trend line will be high.
Any reversal at or around this shall validate entry with ideal take profit targets at 61.8% Fibonacci extension level in the weekly chart.