Bitcoin’s price has entered a full recovery mode, touching the $44,000 zone, which marks the first point for the next trend in the charts. The momentum has been positive for now but there is a need for continuation in the trend-setting actions. This is the first step for a full recovery.
The next 2 steps will be the $48,000, which was established two months ago with some anticipations for a bullish uptrend, and the $56,000, which was the first support level after the all-time high level at $69,000. The next period will be again a fighting scene for bulls and bears that will try to dominate in the market.
We should note that many analysts are referring to the fact that many investors are complaining that they didn’t have the time to buy Bitcoin at a lower price or some of them that were greedy enough to wait for a further correction, down to $30,000.
The moving averages are following a bullish formation, with no signs for a change in the market while the trading volumes made a minor spike during the 2 previous days.
After the consolidation of around $41,500 and the establishment of around $44,000, we expect another weak move in the day trading window around the new point. This consolidation will allow the market to attract more powers and get ready for the next trend.
The concerns behind any positive move in the next period are the lack of continuous positivity and lack of available invested capital from old and new investors. The liquidity factor can be evident from chain analytics, which is available from crypto exchanges’ inflows and outflows.
Since the high level at $280, the market correction reached $110, with some efforts to rebound to previous levels. The main established trend at this moment looks quite negative, as we can observe three peaks at $160, $150, and now at $140, which were a piece of evidence for the next step in the Litecoin market.
This move can be accompanied by the triple bottom that was formed at $140, $125, and $110 respectively. For now, the next bullish move will be a break above the $140 – $160 zone, with a nice outlook towards the $200 point.
As we can remember from 2021, the consolidation zone for the Litecoin market lay between $125 and $200. The negative breakout at $110 possibly activated any signal of market depth and long-term investors tried to fund their old positions for preventing extended losses.
The moving averages crossed each other in a bullish formation, indicating that the market will make an effort to move higher in the next period, always in correlation with Bitcoin’s moves. The trading volumes were sustained at normal levels, without any surprises.
In the short-term window, we can observe that the last dip at $110, a zone that remains out of the core market depth in the Litecoin market, didn’t last more than 2 weeks.
The short-term span of the deep correction shows that the market was ready to react but this move was helped by the overall reaction in the Bitcoin market and the crypto space overall. The expectations, for now, exceed the $140, where the price lays now, but there will be many difficulties towards the $200 point.
The volatility remains low for now so we don’t expect major moves on the upside, at least for this week.
The day-trading window looks quite boring at this moment, as there is no volatility to be exploited in this frame. On the other hand, we can observe a pattern that could be useful for us now and for the next trends.
In the 4-hour window, when there are multiple crosses between the moving averages (usually 2 or 3 of them), the price tends to follow the last signal for at least 5 – 10 %. This signal could be exploited in the day trading segment and we will look for it at other altcoins also.
If this works out, we will include it as a signal in our next articles to find more value in this frame.
MACD index has been greener than ever, marking that the market momentum has been in great shape and this will fuel the market in the next stages. The expectations are moving along with the overall situation in the crypto market and the corresponsive momentum in them.
The RSI index moved to value = 60, showing that the positive trend has not reached yet its full potential and we should expect more uptrend in the next few days. Combining this index with the expectation for breaking the $140 point, another positive trend is ready to emerge and bring the Litecoin market to the next level.
The crypto market has entered a more positive phase at this moment, marking the (potential) end of the bear market. This frame remains fragile as a single negative move could bring the crypto market back to the previous low levels.
Bitcoin has managed to climb the first step at $44,000 towards the full recovery but it seems to be a long way for that.
Litecoin, always in correlation with the Bitcoin market, has managed to get out of the deep zone around $110 and move to $140. This move can be followed by another breakout above $140, which will market another positive trend towards the $200 point.
Read our previous Bitcoin Price Analysises here!
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