LTC/USD Bullish Outlook: Monthly & Daily Analysis
Monthly Chart (Higher Timeframe Perspective)
The monthly timeframe provides the macro perspective for Litecoin’s price action. The key observations here include:
1. Liquidity Raid & Rejection from Demand Zone
Price had dipped into a historical liquidity zone where buyers have previously stepped in.
The long lower wicks in previous candles suggest strong buying pressure, rejecting lower prices.
This area aligns with an accumulation zone where institutional traders might be building long positions.
2. Premium & Discount Pricing Model
Price is currently positioned in a discount zone relative to historical price ranges.
Based on Smart Money Concepts (SMC), assets tend to revert to fair value (equilibrium), making a bullish retracement likely.
3. Inefficiencies & Fair Value Gaps (FVGs)
There is an FVG above current price action, which typically acts as a magnet for price seeking to rebalance inefficiencies.
The market structure remains intact, with price showing signs of accumulation.
4. Key Monthly Resistance Zones
The red highlighted zone around $175 - $193 represents a previous order block (OB), which overlaps with a -3 Standard Deviation Level.
If price sustains bullish momentum, this area could be a significant target.
Daily Chart (Refining Entry & Targets)
Moving down to the daily timeframe, we refine our bias and pinpoint trade execution levels.
1. Recent Liquidity Sweep & Bullish Reaction
A recent liquidity raid took out previous lows, grabbing stop losses from long positions.
Price has reacted from a key support region (around $80-$90), indicating potential demand.
2. Wick Close Equilibrium (Wick C.E.) & Demand Zone
The Wick C.E. level suggests a technical mean reversion point where price often finds equilibrium.
A strong move away from this level suggests bullish momentum is building.
3. Order Blocks & Imbalance Fill Zones
The red zone above price (~$125-$140) represents a bearish order block (OB) that may act as a resistance area.
If price breaks above this OB, it will likely continue to the next liquidity level at $175-$193.
Trade Plan
Entry Zone:
Around $95-$105, as this aligns with liquidity grabs and institutional interest.
Take Profit (TP) Levels:
TP1: $125 (First supply zone & OB)
TP2: $175 (Major resistance & OB)
TP3: $193 (Full FVG fill & -3STD level)
Stop Loss (SL):
Below $80, invalidating the bullish setup.
Summary of the Bullish Case
Price has raided liquidity, tapped into a strong demand zone, and is showing bullish rejection.
There is an imbalance above, which price is likely to seek.
The trade plan suggests a high-probability long position with a well-defined risk-to-reward ratio.
Confirmation required: A daily close above $110-$115 for momentum validation.
Good luck, good trading.
Monthly Chart (Higher Timeframe Perspective)
The monthly timeframe provides the macro perspective for Litecoin’s price action. The key observations here include:
1. Liquidity Raid & Rejection from Demand Zone
Price had dipped into a historical liquidity zone where buyers have previously stepped in.
The long lower wicks in previous candles suggest strong buying pressure, rejecting lower prices.
This area aligns with an accumulation zone where institutional traders might be building long positions.
2. Premium & Discount Pricing Model
Price is currently positioned in a discount zone relative to historical price ranges.
Based on Smart Money Concepts (SMC), assets tend to revert to fair value (equilibrium), making a bullish retracement likely.
3. Inefficiencies & Fair Value Gaps (FVGs)
There is an FVG above current price action, which typically acts as a magnet for price seeking to rebalance inefficiencies.
The market structure remains intact, with price showing signs of accumulation.
4. Key Monthly Resistance Zones
The red highlighted zone around $175 - $193 represents a previous order block (OB), which overlaps with a -3 Standard Deviation Level.
If price sustains bullish momentum, this area could be a significant target.
Daily Chart (Refining Entry & Targets)
Moving down to the daily timeframe, we refine our bias and pinpoint trade execution levels.
1. Recent Liquidity Sweep & Bullish Reaction
A recent liquidity raid took out previous lows, grabbing stop losses from long positions.
Price has reacted from a key support region (around $80-$90), indicating potential demand.
2. Wick Close Equilibrium (Wick C.E.) & Demand Zone
The Wick C.E. level suggests a technical mean reversion point where price often finds equilibrium.
A strong move away from this level suggests bullish momentum is building.
3. Order Blocks & Imbalance Fill Zones
The red zone above price (~$125-$140) represents a bearish order block (OB) that may act as a resistance area.
If price breaks above this OB, it will likely continue to the next liquidity level at $175-$193.
Trade Plan
Entry Zone:
Around $95-$105, as this aligns with liquidity grabs and institutional interest.
Take Profit (TP) Levels:
TP1: $125 (First supply zone & OB)
TP2: $175 (Major resistance & OB)
TP3: $193 (Full FVG fill & -3STD level)
Stop Loss (SL):
Below $80, invalidating the bullish setup.
Summary of the Bullish Case
Price has raided liquidity, tapped into a strong demand zone, and is showing bullish rejection.
There is an imbalance above, which price is likely to seek.
The trade plan suggests a high-probability long position with a well-defined risk-to-reward ratio.
Confirmation required: A daily close above $110-$115 for momentum validation.
Good luck, good trading.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.