Throughout the week, the price of Litecoin was traded in a narrow range near the price zone of $112-115. Buyers did not succeed in fixing it above this zone, and every attempt of buyers to continue to grow ended with a sharp response from sellers on increased volumes:
A weekly candle closed in the yellow price zone and showed us a signal of the weakness of buyers. Thus, sellers are trying to fix the price below the black trend line of the triangle, from which the price went out and was traded higher this triangle throughout the week:
If we analyze the mood of buyers, then their marginal positions sharply decreased last week. Only in the last three days are buyers trying again to increase their positions, but it does not look so confident:
Marginal positions of sellers are stable at historical lows and in consolidation:
By wave analysis, we continue to adhere to the 5-wave growth scenario and is now the 5th (last) wave of growth endinging its formation. Buyers climbed to the level of Fibonacci 0.618. In simpler terms, the current wave (5) is equal to the wave (3) * 0.618. This is a fairly strong level from which we see there is a high probability of a reversal:
However, if buyers do not start their attack, then the next target of buyers is $140.
On a monthly timeframe, we see a fairly sure price growth within 4 months. However, we also see that before the global fall to $23, the current price zone was kept by buyers during 4 months:
So we want to see at least a correction to $85 and make sure whether the current growth is real and whether buyers are ready to take the heat? The question remains open and we still have to wait for the price exit from the consolidation and make a decision by choosing the desired scenario. Patience for all, clear mind and profitable trades!
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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