Litecoin price resumed its journey towards the north yesterday to score a high of $1.85. The uptrend continued to control today’s market and litecoin price is trading at $1.86 at the time of writing of this article.
By studying the 1 hour Bitfinex (LTC/USD) charts from tradingview.com and calculating the 20 hour EMA (look at the below chart), we can better understand the market’s trading pattern. On the 19th of January, the bullish rally was rather strong leading to 4 successive bullish candlesticks on the 1 hour charts. Also, we can recognize “bullish gapping” i.e. the price opens at a price higher than the closing price of the previous trading seeion which reflects the buying power of the market. Litecoin price is now above the 20 hour EMA and we expect it to remain so, if we are going to see the price approach the $2.00 level soon.
By studying the 4 hour Bitfinex (LTC/USD) chart from tradingview.com and plotting the William’s Alligator indicator (look at the below chart), we can conclude the following:
- Oppositely to yesterday’s analysis, the alignment of the moving averages of the William’s Alligator indicator is now perfectly signaling an upcoming bullish wave; the blue line or 13 period moving average is on the bottom, the red line or 8 period moving average is in the middle and the green line or 13 period moving average is on top of both.
- The uptrend that attempted to push litecoin price to higher levels on the 16th of January failed to continue on and was reversed leading to loss of the 2 cents price gain we observed then. Accordingly, if litecoin price breaks through the $1.9 level today, it will face no resistance along the way to $2.00.
Litecoin price increased leading to 2 cents gain during yesterday’s trading sessions. Our analysis concludes that the $2.00 resistance level is almost inevitable, especially that bitcoin price is also rising today.
Charts from Bitfinex