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Monday, August 17, 2020

Why it may be the best time to accumulate Litecoin. Big LONG.

Why it may be the best time to accumulate Litecoin. Big LONG.

Litecoin / Dollar BITFINEX:LTCUSD

By analyzing the past and previous fractal patterns for Litecoin, we see plenty of similarities that could lead to a potential massive bull run for the price of LTC. First lets me explain that this is a long term pattern. Volatility will play out as always so do not invest based off of my personal opinions and do not take this as financial advice. Now that thats out of the way, lets go.

Lets first analyze the weekly RSI (18). I like using the 18 period average as opposed to the normal 14 people are used to. This allows for a cleaner chart in my opinion. Less noise and less distraction. It also eliminates some of those potential fake out scenarios by using a larger data set. You can see that once above the 45-46 level on wRSI (golden line) we have bullish consolidation happening within the green box during the last cycle. This time around we had similar moves with more volatility to both the upside and downside. In my opinion, this was due to more FOMO during the halving pump while the downside was caused by a black swan event via COVID-19. Nonetheless it's a similar pattern as far as price movement is concerned.

snapshot

Now predicting future price is anyones guess, but lets use our past to help us create that potential future move. Lets take a look at our wRSI levels and overlay price movement at key points. We’ll use the same 45-46 level as a reference point. Once breaking out of accumulation and creating a blow off top (we’ll touch on this shortly), you can see that our wRSI stays above our 45-46 level as price action creates a descending triangle using that RSI level as a support (green triangles). Once we broke below that wRSI support, price action dumps below support and the line in the sand has been drawn. This will create our future price action resistance level . You’ll see this highlighted within the red circles.
snapshot

Oddly enough there’s a pattern forming with Litecoin. It seems to love 4’s and 10x/100x multiples. (Roughly)

Let’s dig deeper. Our original ATH on Litecoin was around 55 bucks and 47 the following week. Not quite 4’s but close enough. Our main accumulation zone before the last ATH was right around 4 bucks. We hit an ATH on Coinbase @ $420 and $370 on most other exchanges. Let’s call that a 100x, again roughly. Now this is where it gets a little interesting. Before our price broke down due to lack of strength via our wRSI, our support was right around $9. The second time around it was right around $100 (roughly 10x).
snapshot
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So I think it’s pretty safe to say that we can use our wRSI(18) level of 45-46 as a major market swing point.

Now using what information we have, can we say that $1000( ish ) can become the new $100? Can $4k(isn) become the new ATH? Something like that would look like this.
snapshot

Does is happen? I personally don’t think so BUT, this is crypto. And then there’s this last little gem.

Litecoin has been following similar price targets as Bitcoin . Below you’ll see the comparison between LTCUSD and the BLX chart ( Bitcoin Liq Index). Litecoin seems to be hitting nearly every past bitcoin target. A bitcoin low becomes a litecoin high with some higher upside potential due to increased volatility . Maybe its more possible than we think.
snapshot

I’d also like to point out that Litecoin has basically created an ATL vs ETH as well as a potential low vs BTC . The sine line we have in place is also signaling a BTC ratio top somewhere around Q1 for Litecoin. This could create an opportunity for 2-4 rotations during 2021.
snapshot
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Thats all I have for now. Hope you’ve enjoyed this.
- Rob D Swinging Crypto

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