Hi guys and gals and welcome to the new update on Litecoin. The LTC is moving very well between the different patterns and we will talk about those moves and we will also discuss the different indicators and the moving averages as well.
Up channel and EMAs
Like every top altcoin the litecoin also has formed an up channel. And sometimes it is moving above the exponential moving averagea 10 and 21 and sometime it was moving sideways with these EMAs. At this time the price action has almost broken down the EMA 10 and 21 and likely to have a bounce from the support of the channel:
The different harmonic moves within the channel:
Price action of Litecoin is forming the different harmonic moves with the continuation within this up channel. And every time when it enters in the potential reversal zone of any pattern it takes powerful bullish divergence successfully. First of all the price action formed a bearish Butterfly move then it formed bullish BAT pattern. After the successful formation of BAT pattern it completed the formation of bullish cypher and now it has completed the formation of another bullish BATT pattern and entered in the potential zone of this BAT. This PRZ level or buying zone starts from $43.51 up to $. 67. From here LTC can again take the powerful bullish divergence. However we should set the maximum extent of this potential reversal zone as our stop loss. Because if this PRZ level will be broken down then the price action may move more down to form a bullish Crab.
Simple moving averages on daily chart:
On the daily chart the 50 simple moving average has formed a bull cross with the 100 simple moving average. But the price action is still moving down and at this time it is having the support of 100 SMA. If the 50 simple moving average will form the golden cross with 200 simple moving average then the price action can move more up restart an another bullish rally. Because golden cross between 50 and 200 SMAs is considered as a very strong buying signal among the trader's community.
Simple moving averages on weekly chart:
If we watch the simple moving averages with the time period of 50 and 100 on the long term weekly chart then it can be clearly seen that when back in 2016 the 50 SMA crossed up the 100 simple moving average then it leaded the price action to turn very strong parabolic bullish that produced more than 12000% rally. This time again second time in the history of LTC the 50 simple moving average again formed a bull cross with 100 simple moving average on 3rd Feb 2020. But there was a big difference between the previous bull cross and current bull cross, because the previous bull cross of 50 and 100 SMAs was formed below the candlesticks and that is very strong bullish signal but on the other hand the current bull cross between 50 and 100 SMAs was formed above the price action. Therefore even though this golden cross pulled the price action up but at the same time it was working as a resistance for the priceline. And the price action could not breakout this resistance level of the moving averages and moved down.
Simple moving averages on monthly chart:
For any big move I am looking at simple moving averages of monthly chart. Below you can notice I have placed two simple moving averages with the time period of 7 and second is with the time period of 50. The 7 simple moving average is very significant and has very importance role to produce any big move.
On the below chart you can observe that back in Jan 2017 when the 7 SMA crossed down the priceline the it produced more than 12000% bullish move. Then again in March 2019 the 7 moving average crossed down candlesticks then it produced more than 274% bullish rally. Now at this time the 7 moving averages is very close to the candlestick even it is touching the upper wick of the candlestick and showing the tendency to move down again. this time the 7 MA is already in bear cross with 50 simple moving average. Once the 7 SMA will again cross down the price action and start lifting the priceline upward then it will also form a bull cross with 50 simple moving average as well. And that will lead to a very powerful long term bullish move.
Conclusion:
The price action is already in the potential reversal zone of bullish BAT and has the good support of 100 simple moving average. If the seven moving average on the monthly chart will provide a support to the price action then we can soon witness a very powerful bullish move.
Up channel and EMAs
Like every top altcoin the litecoin also has formed an up channel. And sometimes it is moving above the exponential moving averagea 10 and 21 and sometime it was moving sideways with these EMAs. At this time the price action has almost broken down the EMA 10 and 21 and likely to have a bounce from the support of the channel:
The different harmonic moves within the channel:
Price action of Litecoin is forming the different harmonic moves with the continuation within this up channel. And every time when it enters in the potential reversal zone of any pattern it takes powerful bullish divergence successfully. First of all the price action formed a bearish Butterfly move then it formed bullish BAT pattern. After the successful formation of BAT pattern it completed the formation of bullish cypher and now it has completed the formation of another bullish BATT pattern and entered in the potential zone of this BAT. This PRZ level or buying zone starts from $43.51 up to $. 67. From here LTC can again take the powerful bullish divergence. However we should set the maximum extent of this potential reversal zone as our stop loss. Because if this PRZ level will be broken down then the price action may move more down to form a bullish Crab.
Simple moving averages on daily chart:
On the daily chart the 50 simple moving average has formed a bull cross with the 100 simple moving average. But the price action is still moving down and at this time it is having the support of 100 SMA. If the 50 simple moving average will form the golden cross with 200 simple moving average then the price action can move more up restart an another bullish rally. Because golden cross between 50 and 200 SMAs is considered as a very strong buying signal among the trader's community.
Simple moving averages on weekly chart:
If we watch the simple moving averages with the time period of 50 and 100 on the long term weekly chart then it can be clearly seen that when back in 2016 the 50 SMA crossed up the 100 simple moving average then it leaded the price action to turn very strong parabolic bullish that produced more than 12000% rally. This time again second time in the history of LTC the 50 simple moving average again formed a bull cross with 100 simple moving average on 3rd Feb 2020. But there was a big difference between the previous bull cross and current bull cross, because the previous bull cross of 50 and 100 SMAs was formed below the candlesticks and that is very strong bullish signal but on the other hand the current bull cross between 50 and 100 SMAs was formed above the price action. Therefore even though this golden cross pulled the price action up but at the same time it was working as a resistance for the priceline. And the price action could not breakout this resistance level of the moving averages and moved down.
Simple moving averages on monthly chart:
For any big move I am looking at simple moving averages of monthly chart. Below you can notice I have placed two simple moving averages with the time period of 7 and second is with the time period of 50. The 7 simple moving average is very significant and has very importance role to produce any big move.
On the below chart you can observe that back in Jan 2017 when the 7 SMA crossed down the priceline the it produced more than 12000% bullish move. Then again in March 2019 the 7 moving average crossed down candlesticks then it produced more than 274% bullish rally. Now at this time the 7 moving averages is very close to the candlestick even it is touching the upper wick of the candlestick and showing the tendency to move down again. this time the 7 MA is already in bear cross with 50 simple moving average. Once the 7 SMA will again cross down the price action and start lifting the priceline upward then it will also form a bull cross with 50 simple moving average as well. And that will lead to a very powerful long term bullish move.
Conclusion:
The price action is already in the potential reversal zone of bullish BAT and has the good support of 100 simple moving average. If the seven moving average on the monthly chart will provide a support to the price action then we can soon witness a very powerful bullish move.
