John Bollinger Expresses Concerns Over Litecoin’s Performance
Famous trader John Bollinger has raised worries about Litecoin’s performance compared to Bitcoin. Bollinger, creator of the Bollinger Bands tool, pointed out a concerning pattern in the Litecoin market.
Bollinger’s Bearish Litecoin Prediction Explained
Bollinger provided a chart of the LTC/USD pair, showing Litecoin’s price action in relation to its Bollinger Bands on both daily and weekly scales. The price is currently below the upper Bollinger Band, indicating a lack of bullish momentum.
The Bollinger Bands form by plotting a range above and below a moving average. The chart shows that the LTC/USD price is struggling beneath the midpoint of these bands, which is bearish. The price is significantly lower than the upper band level, suggesting potential resistance.
Bollinger’s analysis also points to a ‘2 bar reversal’ pattern at the lower band, indicating that efforts to drive the price higher are met with resistance. The Bollinger %B indicator further supports this weakness, as it shows Litecoin’s price sitting closer to the lower band than the upper band.
LTC Price Under Pressure
The narrowing of the Bollinger Bands suggests decreased volatility and could precede a significant price movement. The narrowing on the Litecoin chart indicates that the market may be gearing up for a breakout or breakdown.
Litecoin’s underperformance relative to Bitcoin is worth noting since Bitcoin often leads the crypto market trend. If Litecoin is not keeping up with Bitcoin’s movements, it could indicate a lack of confidence or interest from traders in altcoins and specifically Litecoin.
Hot Take: Litecoin Faces Downward Pressure
Overall, Bollinger’s analysis suggests that Litecoin is in a precarious position. The price action at the lower Bollinger Band, the bearish ‘2 bar reversal’ pattern, the sub-0.5 Bollinger %B values, and the narrowing of the Bollinger Bands all indicate that Litecoin may continue to experience downward pressure in the near term.
As of now, Litecoin is trading at $70.05 and is currently retesting a key support level. A daily close above this level is crucial for the Litecoin price.
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