Litecoin Price Analysis (2nd Feb 8th Feb) Contagious Uncertainty

Litecoin price was greatly affected by the uncertainty that hit the bitcoin market last week, so although the week started by a small bullish wave that drove the price up to a high of about $2.00, the market’s buying power failed to support this advance and the price fell to reach a low of around $1.7 on the 5^th of February.

By studying the 1 day Bitfinex (LTC/USD) chart from tradingview.com and plotting the Fibonacci retracement fan along a trend line that extends between the high reached on the 13^th of November ($4.36) and the low reached on the 14^th of January ($1.09) (look at the below chart), we can better evaluate past and present trends. Despite the fact that the downtrend that started on the 25^th of January was reversed by the 0.618 Fibonacci retracement fan line, last week’s trading volume failed to push the price up to test the $2.4 resistance level.

By studying the 4 hour Bitfinex (LTC/USD) charts from tradingview.com and plotting the William’s Alligator indicator accordingly (look at the below chart), we can see that the market didn’t exhibit a prominent trend last week, as the price was moving sideways to the $1.77 level. However, the price is currently above the 3 moving averages of the alligator and despite the fact that the gap between the 3 moving averages is quite narrow, their arrangement is in favor of a bullish wave that can take litecoin price up to $2.4 soon (red line above the blue line and the green line above both).

Conclusion:

Litecoin price failed to rise last week, as it was influenced by the bitcoin market. Technical analysis is highly suggestive of a bullish wave pushing the price up to $2.4 next week.

Charts from Bitfinex