This time we will look up-close at Litecoin, its price action.
This week is coming to an end. This week is the "pause" week. Week after week, we get an advance followed by a pause. If the same pattern continues to repeat we are set to experience higher prices.
Here is the weekly chart, let me know what you see in the comments:
Pretty interesting right?
There is more.
Now we will consider the daily timeframe.
Litecoin's price is really strong.
A retrace tends to balance out a rise. If it is a small rise, we get a small retrace. If we have a strong rise, we get a strong retrace. If the rise is quick, the retrace should also be quick, etc.
Let's start with the chart:
The previous retrace lasted five days from peak to bottom. The current retrace so far is in the same state. A peak 10-May and a low 15-May. The low 15-May produced a hammer candlestick pattern. This can support the retrace being over but this is super short-term.
The price is really strong and this is something that favors the bulls. No significant retrace after more than 70% growth means that bullish action is only getting started.
The first retrace activated the 0.382 Fib. retracement level. The second retrace activated 0.5. The current retrace activated the 0.382 level again. This goes in perfect balance with bullish dynamics.
When the market is bullish and rising, retraces tend to stop at the 0.382 Fib. retracement level and sometimes reach 0.5. When the market corrects to 0.618, 0.786 or lower, we are looking at a correction and this tends to happen only after a very strong rise.
Here we also have a bull flag and a strong daily RSI at 61.
What one does the rest follows. So, if Litecoin is pointing toward a continuation, I believe Bitcoin and the other Altcoins will do the same.
Namaste.