Litecoin is coming into multiyear support and from Elliott wave and cycle perspective reversal may not be far away.
Litecoin is bearish for the last year, but cyclically it can be approaching strong monthly support area, which means that bounce and recovery can be near, ideally at the end of 2022 or beginning of 2023. Notice that each time Litecoin made 90% of a retracement or more, price stabilized, which is a normal event as pessimism is at extreme levels. And we know that market moves from pessimism to optimism, so ideally the sentiment will change, possibly in 2023.
Now, the question is what is the pattern from the Elliott wave perspective, which describes of how the people behave. Well, what we see is mostly sideways price action since 2018. And, the wave structure looks like a consolidation for wave (IV) which can be even a triangle with subwaves D and E yet to come if swing low of wave A stays untouched. We can see a three-wave drop from the previous subwave B highs, which can be subwave C of a triangle. Keep in mind that in a triangle each leg is made by three subwaves. So if we are correct then shift in sentiment is not far away; it’s expected to change in $30-$40 area.
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Trade well, GH
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