Litecoin (LTC) continues to rise, nearly to the tick, following the Senkou Span B trend. Senkou Span B and Litecoin’s price movements are difficult for me to categorize as bullish or bearish. It’s a strange pattern of conduct. I see nothing but confusion, hesitation, and no notion of what Litecoin wants to accomplish when I look at its chart.
There are about equal reasons to be optimistic or bearish here, but the market’s closeness to a breakthrough favors the bulls. Litecoin is just closer to conditions that support a bullish rise than it is to ones that support a bearish move.
Litecoin has to close around $205 USD to $206 USD to transform into a full-fledged roaring bull monster and charge higher. Price would be above the Cloud, and the Lagging Span would be above the candlesticks. Future Senkou Span A would also most likely cross over Future Senkou Span B.
The percent B is another reason why the bullish side is favored. While the percent B has above 0.8, the Relative Strength Index has remained below 60. This indicates that any breakout has a strong chance of being long-lasting and maintained. Bulls, on the other hand, should not be overconfident in this situation.
There is still a negative aspect to the transaction. We’re approaching the weekend, and the market loves to play games with people at this time of year. Liquidity and participation dwindle, making it simpler for the major players to steer the market in their preferred direction.
As a consequence, the candlestick chart of Litecoin and the Composite Index still shows some underlying bearish divergence. In a bear market RSI setup, the Relative Strength Index fails to pass above the first overbought level (55). With Senkou Span B and the Kijun-Sen at $188, there is also some significant near-term resistance ahead. Over the weekend, keep an eye on that level.