Litecoin (LTCUSD) Daily Ichimoku Chart
Above: Litecoin (LTCUSD)
Litecoin continues to trudge along higher, following almost to the tick the movement Senkou Span B. I have a hard time looking at Senkou Span B and Litecoin’s price action as either bullish or bearish. It’s very odd behavior. When I look at Litecoin’s chart, all I see is confusion, indecision, and no idea what the heck it wants to do. There is a near equal reason to be bullish or bearish here, but the proximity to a breakout favors the bullish side of the market. Litecoin is simply closest to conditions fulfilling a bullish move than a bearish move.
For Litecoin to turn into a complete raging bull monster and charge higher, it needs to close around the $205 to $206. That would put price above the Cloud, and it brings the Lagging Span above the candlesticks. Additionally, Future Senkou Span A would likely cross above Future Senkou Span B. Another reason that the bullish side is favored is the %B. The %B has crossed above 0.8, while the Relative Strength Index remains below 60. This means that any breakout has a high probability of being sustained and long-lasting. But bulls shouldn’t be overly confident here.
The bearish side of the trade still exists. We are entering the weekend, and this is the kind of time when the market likes to mess around with people. Liquidity and participation dry up, and it is easier for the big players to move the market in the direction they’d like. As a result, there remains some hidden bearish divergence between Litecoin’s candlestick chart and the Composite Index. Likewise, the Relative Strength Index struggles to cross above the first overbought level in a bear market RSI setting (55). There is also some solid near-term resistance ahead with Senkou Span B and the Kijun-Sen ahead at $188. That will be the level to watch over the weekend.
If Litecoin fails to breakout and bulls, show a lack of trying, sellers will likely come in to take over. First, bears will need to push Litecoin below the 50% retracement and Tenkan-Sen to close below the prior swing low at $138. From there, it should be an easy trip for the bears to push Litecoin to the $100 value area.