Let’s start the analysis of one of the liquid coins — Litecoin. Last week there was an increased volume, which corresponds to the length of the candle. If we look at a weekly candle from 1 April and compare it with a candle last week, then at the same volumes, the candle from 1 April looks more confident and more likely to think about the continuation of growth:
It means that buyers are beginning to face resistance in their path and the likelihood of continuation of the growth without correction decreases. At the moment, we want to distinguish three price zones, which will help us understand where the price will move further. Let’s start with the price zone over which buyers are now trying to fix themselves in order to continue growth — $85-90:
As you can see, in early April, buyers needed large volumes to break through this price zone, but at that time they did not manage to keep it. In the past, in 2017, a price zone of $85- 90 halted growth for two months.
The next price zone is $112-115. This is the key price zone for this coin. The last time, buyers kept this price zone for 4 months, after which the price fell to $23. Therefore, if buyers try and fix above this price zone, it will be a serious fact of the strength of buyers and a signal of the probable growth continuation.
At the moment, we see that buyers have been testing the black trend line for the third time. Below, we showed a dash-and-dot line which is local buyers support. However, the main support is in the third price zone of $60-63:
Given these facts, we see that a new consolidation triangle with an upper limit of $112-115 and lower limit of $60-63 is formed. Good range for trading, isn’t it?
Marginal positions of buyers are in consolidation:
Sellers have actively closed their positions since the end of March, but today they have tested the lower limit of the global triangle:
If growth from December 2018 is considered as a 5-wave structure, then the 5-wave is now ending, which at a price of $112 will be 0.618 * wave 3:
Therefore, if sellers keep a price range of $112-115, we expect a correction with the first stop of $85-90.
We wish you the right decisions and lucky week!
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The post BitcoinNews.com Litecoin Market Analysis 20th March 2019 appeared first on BitcoinNews.com.