Litecoin rallied to $150 after a fast dip to $100 in a bearish Crypto market. Will the bullish recovery be sustained? The following is our 7 February Litecoin price prediction using Elliott wave theory.
07 February, AtoZForex – Litecoin like other coins has been bearish. It dropped to $100 at the beginning of the week before gaining about 50% to stay at $150. The general Crypto market is still in a bearish mood. We might have noted that the bearish move is in the last stages. At the end of the correction, we can expect the market to be buoyant again. What better method exists out there that can be used to measure the extent of the correction than the Elliott wave theory?
In the last update, I wrote about two possible scenarios. The first scenario expected price to dip to $80 or below to complete wave 2 correction. The second scenario had a leading diagonal to end around $125 or below (but price was expected to stay above $100) before a rally to $250-$300. Which of these scenarios has price agreed with so far? The second seems more in tune with recent price activities. Let’s check this scenario again as used in the last update.
If the current dip is limited at $125, we should expect a rally to $200-$250. The scenario, though suggests a rally coming soon, projects a lower price for wave 2 correction than the first scenario.
Price stayed below $125 (a throw under) but the diagonal pattern was not violated. The bounce off at $100 was also sharp as shown in the chart below.
7 February Litecoin price prediction – LTCUSD Forecast
A 3-wave rally could be seen to $220-$250 in the coming days to complete wave (c) of B. If price rallies strongly above the level, it could mean that wave 2 is already completed and we would re-label to fit the first scenario. A dip after the rally to $220-$250 is more probable and remains my preferred wave count. If price goes sideway and stays between $175 and $100, a new low is very likely. Stay tuned for the next update on LTCUSD and LTCBTC price forecasts.
Do you have other views in contrast to the ones listed or you want to compliment them further? let’s know by your comment below.
Don’t forget to share this analysis with people that matter to you.