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Litecoin [LTC/USD] Technical Analysis: Long-term fate of cryptocurrency to be ruled by bullish sentiments

Priyamvada Singh

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Litecoin [LTC/USD] Technical Analysis: Long-term fate of cryptocurrency to be ruled by bullish sentiments
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Litecoin [LTC], the eighth-largest cryptocurrency according to CoinMarketCap, is floating in the red space on the price graph. Moreover, the coin has been overtaken by Tether [USDT] once again.

At the time of writing, Litecoin was trading at a depreciated price of $29.17, with a market cap of $1.74 billion. Here, the total trade volume of the token in the past 24 hours was recorded at $410.5 million.

1-hour

LTCUSD 1-hour candlesticks | Source: tradingview

LTCUSD 1-hour candlesticks | Source: tradingview

In the one-hour technical analysis of the Litecoin candlesticks, an acute downtrend has been spotted from $35.9 to $29.7, whereas the current support level is set at $27.6. The concentration in prices has packed the market tightly, preparing it for a trend breakout.

The Parabolic SAR is bearish on the cryptocurrency as the dots have aligned themselves above the price candles to give a negative price prediction.

The Aroon Indicator is also bearish on the LTC market as the downward trend is stronger than the upward trend on the graph wherein the green trend has crashed.

The Relative Vigor Index is the only indicator standing with the Litecoin market wherein the RVGI has made a bullish crossover by the signal.

1-day

LTCUSD 1-day candlesticks | Source: tradingview

LTCUSD 1-day candlesticks | Source: tradingview

In the one-day time frame of the Litecoin candles, the downtrend is stretching from $55.8 to $32.9, whereas the support is set at $22.8. However, there is no possibility of a trend breakout in the long-term as price concentration is not visible yet.

The Bollinger Bands are currently depicting a high buying pressure in the LTC market as the reading line is traveling in the buy zone to move further up.

The Chaikin Money Flow is also tending to move up to indicate healthy buying activity in the market. The reading line is currently approaching upwards to cross the 0-mark.



Conclusion

In the technical analysis, it has been observed that the cryptocurrency is going to stay bearish in the short run but will soon turn bullish in the bigger picture. However, not much volatility is expected in the foreseeable future.





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Priyamvada is a full-time journalist at AMBCrypto. A graduate in Journalism & Communication from Manipal University, she believes blockchain technology to be a revolutionary tool in advancing the future. Currently, she holds no value in cryptocurrencies.

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JP Morgan: Big banks stand corrected as Bitcoin rally past intrinsic value; admits current surge mirrors 2017 rise

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JP Morgan: Big bank stands corrected at Bitcoin rally past intrinsic value; admits current surge mirrors 2017 rise
Source: Pixabay

Big banks are riding a FOMO wave as the Bitcoin bull-run is just beginning. Spearheaded by the changing colors of JP Morgan, which recently forayed into the digital assets world, the banking elite is now suggesting that their initial stance on Bitcoin and the larger cryptocurrency world might have been off.

A recent chart by JP Morgan shows the current BTC price veer upwards chiding the “intrinsic value” the big bank placed on the virtual currency.

Based on the article by Bloomberg, the price of the coin would reverse towards the end of December 2018 and then make marginal gains until May 2019, all under the $5,000 mark. In reality, the BTC price, after dropping to “rock bottom” at just above $3,100 in early December 2018, edged upwards.

Several spurts of growth were seen in early January and February, prior to a massive April ascendance. On April 2, Bitcoin did away with the bank’s value mode and amassed a daily gain of over 15 percent, fuelling its current rise. Breaking the $5,000 ceiling in the process, which was pegged to remain intact well into May 2019, the king coin is now almost $3,000 ahead of the mark and is not looking to stop.

Source: Bloomberg

It should be noted that JP Morgan’s “intrinsic value” is calculated on the basis of the marginal cost of production, electricity prices, and hash rates. This model does not take into account, at least on absolute terms, the anticipatory effect of the 2020 halving, which, according to a slew of analysts is the behind the price rise.

Nikolaos Panigirtzoglou, the MD in the Global Market Strategy team at JP Morgan stated that Bitcoin breaking through its “intrinsic value” showed signs of mirroring its 2017 bull run. He evidenced this move by comparing the pre-December 2017 slump to the one seen prior to the current bullish swing.

The analyst added:

“Over the past few days, the actual price has moved sharply over marginal cost. This divergence between actual and intrinsic values carries some echoes of the spike higher in late 2017, and at the time this divergence was resolved mostly by a reduction in actual prices.”

With the analyst admitting that the imparting of an “intrinsic or fair value” to a cryptocurrency, much less a volatile one like Bitcoin, is a “challenging” ordeal, a mere JP Morgan acknowledgement of a Bitcoin bull-run is a remarkable sign for the digital assets industry, especially given the bank’s and its CEO Jamie Dimon’s Bitcoin-bashing in the past.

Mati Greenspan, senior market analyst at eToro attested to the same, adding a key point that JP Morgan failed to take into account in their calculation. He stated:



“Great to see JPM finally admitting that Bitcoin has intrinsic value.
Now wait till they understand that miners who run a surplus tend to begin hording.”

Despite Bitcoin slumping at press time, recording a 1.23 percent decline against the dollar, the prospects look positive. After recording a massive gain on 19 May, briefly surging past $8,000 for the second time in a week, Bitcoin created a High-Low [HL] at $7,100, which many analysts look at with glee.

This HL immediately following last week’s pull-back caused due to post-Consensus bears, a Bitstamp sell-order and market correction showed the king coin’s bullish persistence and can even be a foundation for a $9,000 ascendance, defying any “intrinsic value” expectations.





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