The bears seem to be in control of the market, but Litecoin may experience a bullish takeover soon.
Litecoin trading charts indicate a clear head and shoulder pattern that was completed within seven months. The exit and entry point of the first pattern is obvious in the 0.786 fib level on the neckline at 10,000 Stats.
Hope For A Bullish Reversal
There is a bullish triangle pattern ascending and linking the two head and shoulder formations. This is a strong indicator of a trend reversal.
The new head and shoulder pattern got its left shoulder during last year’s pre-Christmas surge. You’ll recall that Litecoin went as high as $365 during that period. The head of the pattern, however, formed earlier this year around February when investors came together to gain from the Litecoin Cash hard for. Another contributor was the long-anticipated launch of Litepay which collapsed before it was materialized.
The pattern’s new entry point may rest near the 0.618 fib level with a neckline at 0.5 fib level which is rather promising.
Considering the retracement, LTC may return to the 14,000 Sats before or by April 9th. After that, it may rest at 0.236 fib level and support at 20,000 Sats by the 2nd of May. This will lead to the formation of the new peak and traders will anticipate a bearish sell-off.
This may mark the beginning of a price rebound that will put a smile on every investor’s face.
All the indicators show that there is hope for Litecoin shortly. However, the trend will only be confirmed if the 50/200EMA doesn’t converge until the shoulder (right shoulder peak) is formed.
If the moving averages cross, traders should expect a heavy sell-off because Litecoin supporters will withdraw and invest in more stable assets.