Deeper evaluation of Litecoin’s present value motion and projecting its future value ranges.
Litecoin (LTC) is a chart that reveals you the way soul-crushing cryptocurrencies could be. If we measure from the 2018 bear market low of 25.73 on December sixth, 2018 to the subsequent main swing excessive made on June 23rd, 2019, at 142.20, we will see why bulls had been simply nuts. Over a interval of 197 days, Litecoin gained an astonishing +556.47%, simply crushing Bitcoin and Ethereum’s positive aspects – as much as that date. We then witnessed 179 days of Litecoin wiping out virtually all of these positive aspects to drop -75.42% to finish 2019 at a dismal 41.10. Litecoin went from up +556% to gaining solely +39.32% for 2019. Solely in cryptocurrencies would we think about a achieve of 39.32% as miserable!
However Litecoin is exhibiting indicators of like and indicators of shifting greater. I’ve typically regarded Bitcoin because the DOW of cryptocurrencies, Ethereum (ETH) because the S&P 500, and Litecoin because the Nasdaq (I’ll have to alter that up in some unspecified time in the future). Litecoin is definitely probably the most unstable out of the ‘huge 3’ as I name them. Litecoin is, traditionally, a pacesetter of strikes for the combination cryptocurrency market. When Litecoin begins to make bigger positive aspects, you will note Bitcoin after which the remainder of the market not far behind. When Litecoin begins to drop, you see every part else pause earlier than leaping off the cliff to observe Litecoin. Litecoin is repeating the ‘main’ habits that we’ve traditionally seen it carry out. Right this moment (January 22nd, 2020) is one other day the place Litecoin is appearing sneaky and making positive aspects in opposition to each Bitcoin and Ethereum – Litecoin is presently up +1%, Bitcoin down -1.05%, and Ethereum down -1.06%.
Crucial situation I see on Litecoin’s chart is the return to the 1/eighth Main Harmonic at $58. Litecoin beforehand returned to this worth again on January 14th, 2020, and has oscillating round this worth for over per week. If Litecoin holds the 1/eighth Main Harmonic, we should always anticipate a rocket launch greater for Litecoin – after which the remainder of the cryptocurrency market. The trick right here is to establish how far Litecoin can go and the place we should always look forward to finding resistance. There are a number of methods to venture future revenue and resistance, however I want to make use of Fibonacci extensions after which see if there are different, pure value ranges that flatter the Fibonacci extensions.
The chart is linear, however the extensions are primarily based on logarithmic measurements. The highlighted inexperienced rectangles present the place I anticipate Litecoin to face the toughest areas of resistance sooner or later. I’ve recognized them as Zones 1, 2, and three. The Fibonacci extension is drawn from the December 18, 2018, swing low to the June 2019 swing excessive after which from the latest December 2019 low.
Zone 1 – The simplest and most blatant of the three targets is Zone 1. Without having any additional items of study, one can assume that the $150 worth space will probably be examined as resistance as a result of it’s each a psychological quantity and the worth are the place the latest swing excessive was discovered. The opposite two items of technical evaluation that assist verify Zone 1 as a main resistance space is the three/eighth Main Harmonic at 150.88 and the 100% Fibonacci extension at $59.56.
Litecoin (LTC)
Zone 2 – Zone 2 is what I’d think about being the very first resistance take a look at for Litecoin. The resistance zone is between the 5/eighth Main Harmonic at 247.98 and the 1.618 Fibonacci extension at 236.04. This worth space can also be the place Litecoin closed in December 2017 (closed at 227.16). Apparently, the three/eighth Main Harmonic and the 5/eighth Main Harmonic are often known as the Decrease Buying and selling Vary and Higher Buying and selling Vary (respectively) – it’s the realm the place we might anticipate to see Litecoin spend probably the most period of time buying and selling.
Zone 3 – Zone Three is the most important extension and retest zone of the all-time excessive. The worth space for this resistance zone is the 7/eighth Main Harmonic at 345.07 and the two.618 Fibonacci extension at 359.80. If Litecoin does attain this zone, I supposed to exit an incredible majority of my place and add on any dips or any confirmed break in direction of new all-time highs.
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