Litecoin Recovery To End Ongoing Crypto Winter Darkness?
In today’s episode of NewsBTC’s daily technical analysis videos, we examine Litecoin after a 10% intraday move to see if it will turn into a broader crypto market rally.
Check out the video below:
VIDEO: Litecoin Price Analysis (LTCUSD): November 2, 2022
Weekly LTCUSD chart shows tightest Bollinger bands in five years
On daily timeframes (only shown in the video), Litecoin is outside the upper Bollinger bands, above the Ichimoku cloud, has marked the Parabolic SAR and given a buy signal on the SuperTrend. LTCUSD daily also took out the 50-day and 100-day moving averages and is flirting with the 200-day moving average.
Weekly technical indicators also support a larger bullish move. Litecoin has regained the intermediate Bollinger Band and then the Tenkan-sen on the Ichimoku.
How tight the Bollinger bands are is particularly notable, as they are the tightest in over five years, and the tightest since the last time Litecoin far outperformed Bitcoin.
The Bollinger Bands are the tightest in five years | Source: LTCUSD on TradingView.com
Related Reading: Trick or Treat for Bitcoin on Halloween Night? | BTCUSD Analysis October 31, 2022
Litecoin bottoms in phase with previous cycle bottoms
On monthly timeframes, LTCUSD turns bullish and turns green on the Fisher Transform. Pictured is the iFish Smoothed version, created by MoeMentum on TradingView. Fisher Transform helps to find cyclical turning points in the markets. Adding cyclic timing tools shows that the cycle bottoms are almost perfectly in phase.
Elliott Wave Points to Grand Finale in Crypto Bull Market
The once top-ten cryptocurrency appears to have formed a long-term channel, bouncing right off the bottom of the upward trend line.
Elliott Wave count suggests that Litecoin may be about to embark on impulse wave 5 of an expanding diagonal, after completing a Wave 4 correction back to the lower trendline. Expanding diagonals alternate between impulse waves and corrective waves from the zig-zag family. Zigzags are typical ABC corrections. Wave 2 would be more simple in structure, while wave 4 was complex.
The most recent surge in Litecoin yielded more than 9000% returns. It happened just as Bollinger Bands on weekly timeframes were as tight as they are right now. Although 9,000% will not be possible again, the top of Wave 5 could be somewhere around $1,500, or about 3,000% in returns.
