BitcoinNews.com Litecoin Market Analysis 8th July 2019
Litecoin trading week was extremely boring and monotonous. The price was moving in the 5% range, and the last two days, the volumes of this coin had a record low. We remind you that sellers managed to stop the aggressive attack of buyers, which began to come to the boil from 9 May. However, sellers breaking the local blue trend line were not able to break through the critical price zone of $112-115. An unsuccessful attempt was made on 27 June, after which the volumes are constantly decreasing and the price is traded without touching the price zone.
The market is frozen in anticipation and there is not even a hint at the 4-hour timeframe for the forthcoming price movement:
A weekly candle is closed on small volumes by touching a critical point, which gives hope to buyers of a possible continuation of growth from the new week. Last time, such a small volume of trades for a week was fixed in November 2018:
The chart of marginal buyer positions is not particularly different from the LTC/USD chart:
Sellers also froze in anticipation and did not want to take the initiative in their hands:
In our opinion, the more unsuccessful attempts to break through the price zone of $112-115 will be from sellers, the more buyers will notice weakness and change their mood. This week, during 1 and 2 July, sellers touched this zone, but by creating large pins, after that no more serious attempts were done. Given this fact so far the force remains on the side of buyers.
If we draw a trend line on local lows from 14 February, we see that breaking the local blue trend line, sellers have not yet cope with the global one, so the wave of growth has not yet ended and we consider the current fall as a correction:
Analyzing the fall from 23 June, we decided to work out another scenario based on the wave analysis. Since the correction is not sharp and we do not see the clear dominance of sellers, there is a big chance that we are now not in the wave (5), but continue to move within the wave (3):
In this case, if buyers keep $112-115, their first stop at a price of 140, the next is $160 and the final target is $190.
Otherwise, after breaking the critical price zone, we expect stops at the prices of $99 and $85. We hope that next week the price movement will be more active and we will be able to choose a more likely scenario for trading.
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About the Author: Peter Oleshchuk is a trader and technical analyst. He has spent two years studying and analyzing the crypto market. Image Courtesy: Bitcoin News
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