In today’s episode of NewsBTC’s daily technical analysis videos we are examining Litecoin after a 10% intraday move to see if it will turn into a broader crypto market rally.
Have a look below at the video.
VIDEO: Litecoin Price Analysis – LTCUSD: November 2, 2022
The Weekly Chart of LTCUSD Shows the Tightest Bollinger Bands in Five Years
Litecoin, which is shown in the video on a daily basis, is below the Bollinger Bands. This means that it has tagged Parabolic SAAR and been given a buy signal by the SuperTrend. LTCUSD daily also took out the 50– day and 100-day moving average and is flirting with the 200-day moving average.
A bullish trend is also supported by weekly technical indicators. Litecoin has regained the middle-Bollinger Band, and the Tenkan-sen for the Ichimoku.
It is notable how tight Bollinger Bands are, because they are both the tightest in five years and the tightest since Litecoin’s last performance.
Bollinger Bands tighten to their highest level in 5 years. Source: TradingView.com.| Source: LTCUSD on TradingView.com
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Litecoin bottoms in phase with Past Cycle Troughs
LTCUSD’s monthly trend is to turn green and flip bullish in the Fisher Transform. Pictured is the iFish Smoothed version, created by MoeMentum on TradingView. It helps identify market turning points by using the Fisher Transform. The addition of cyclical timing tools reveals that the cycles troughs almost always coincide with each other.
Elliott Wave Points to Grand Finale in Crypto Bull Market
This once top-ten cryptocurrency seems to have developed a long-term channel. It is currently bouncing right from the bottom of the downward sloping trend line.
Elliott Wave count suggests that Litecoin might be in the midst of Impulse Wave 5, an expanding diagonal. It will have completed a Wave 4 correction to lower trends. Expanding diagonals are a mix of impulse waves and corrective wave from the zigzag group. ABC corrections consist of zig-zags. Wave 2 will be simpler in structure than Wave 4. Wave 4 is more complex.
The last wave of Litecoin’s final rise produced a more than 9,000% return on investment. This happened at the same time that Bollinger Bands for weekly timeframes had been as tight as they were right now. While 9,000% won’t be possible again, the peak of Wave 5 could be somewhere around $1,500, or roughly 3,000% in ROI.