As Bitcoin Price Consolidates, Litecoin Looks Ripe for Massive Gains
Cointelegraph By Keith Wareing's original article for cointelegraph.com reduced by 55%
The last time that the Heikin Ashi candles transitioned from red to green on the Bitcoin monthly chart was on April 1st, 2019.Within just 12 weeks of this last occurring, Bitcoin's price exploded from a low of $3,979 to $13,868 which represented a massive 350% growth in BTC/USD value. It could be that we have already witnessed a reversal and Bitcoin price could begin to rise, but history tells us that there is probably some more downward movement ahead of us before we start to see sustainable weekly gains. One can normally expect the price to then form new support above the MA.This hasn't yet happened, and at the time of writing the moving average is around $9,945 whilst Bitcoin price is currently $9,148.
Given the visible momentum from the candles on the weekly chart, it is not unreasonable to expect Bitcoin price to close over $10,000 before the end of the coming week if the bulls have their say. Using the same analysis on Bitcoin, the weekly positioning looks like a stronger buy on Litecoin than is does on Bitcoin. From a glance of Litcoin's weekly MACD, we can see that whilst the MACD and signal lines look almost identical to that of Bitcoin, the histogram is showing is that a bullish reversal is likely to be more imminent than Bitcoin's weekly MACD.
Litecoin has printed four consecutively weaker candles whereas there are only two on Bitcoin. Typically traders that use the RSI to identify heavily oversold assets would be looking for a reading below 30, but it's a far better signal than Bitcoin's current reading in the high 50's.As such, from a purchasing point of view, Litecoin looks to have greater upside potential and stronger technicals than Bitcoin for the week ahead.Bearish scenarioAs Bitcoin continues to consolidate, the first level of support can be found at $8,600.
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CN [too long; didn’t read]
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