07.02.202116:37 Forex Analysis & Reviews: Forecast and trading signals for Litecoin for February 7-8. Recommendations for Sunday-Monday.

#Litecoin 1H.

On the hourly timeframe of February 7, the Litecoin cryptocurrency exchange rate was fixed below one of the two ascending trend lines. Thus, the upward trend is temporarily canceled, the cryptocurrency will now strive for the lower trend line, which lies near the Senkou Span B line of the Ichimoku indicator. Cryptocurrencies are a very specific trading tool. They are traded in a completely different way from regular currencies and currency pairs. They are affected by fewer factors, and they are much more volatile. Therefore, when trading cryptocurrencies, you should always remember about security. None of the currency pairs can double in price within a month or two. Any cryptocurrency can do this in less time. The general technical conclusions are as follows: an upward movement is still more preferable due to the persisting second trend line. Thus, it is now possible to trade down, but from all significant and key supports, a rebound may follow with the resumption of the upward trend. Thus, in the event of such a rebound (clear and accurate), it will be possible to already consider options for long positions. I would also like to note in one of our first articles on cryptocurrencies that technical factors for analysis are almost always in the first place.

#Litecoin 15M.

In the 15-minute timeframe, the lower channel of the linear regression turned down. And if none of the supports (147.43, 143.95, trend line) will be able to keep the cryptocurrency above itself, then the senior channel of linear regression will turn down. Further, the prospects for Litecoin will depend solely on the second trend line on the 4-hour timeframe.

One of the main reasons for the high volatility of any cryptocurrency is the lack of control of its governments and central banks. Of course, theoretically, any central bank or government can prohibit the use of cryptocurrency on its territory, however, this will not affect its turnover around the world and even on the territory of this country. Cryptocurrency has no physical properties, it's just a code. The code can be hidden, placed on a remote server, and there are many other ways. At the same time, despite the huge amounts of capitalization of the largest cryptocurrencies, they are still much less in the world than ordinary, fiat money. Let's say how many trillions of dollars there are in the world? Even if some central bank (as the Fed is now) is going to pour another $ 2 trillion into the economy, this leads to a fluctuation in the euro/dollar exchange rate by 5-10% within a few months. Almost any cryptocurrency can rise in price by 5-10% per day without any reason. Simply because today the demand for a particular cryptocurrency has increased. Of course, central banks want to control cryptocurrencies. For example, the head of the ECB, Christine Lagarde, recently said: "Cryptocurrencies are a very speculative asset, with the help of which strange business is conducted, as well as money laundering activities. It is necessary to create global rules for the regulation of cryptocurrencies because if there are certain loopholes, they will be used by illegal organizations and individual criminal persons. There must be global cooperation and concerted action on this issue. First, coordinated action by the G7 countries is required, and then the list of countries can be expanded to the G20. But this problem needs to be addressed." However, while the turnover of cryptocurrencies is not controlled in any way, all of them (at least the main ones) will tend to grow in the long term. If only because their coins are no longer available, and the demand continues to grow.

Based on all of the above, we have two trading ideas for February 7-8:

1) Buyers let the initiative out of their hands. Thus, we recommend buying the cryptocurrency again in the event of a price rebound from one of the supports - 147.43, 143.95 or an ascending trend line with the targets of the Kijun-sen line (152.37) and the maximum level of 156.43. Take Profit in these cases can range from 400 to 1200 points.

2) The bears tried to seize the initiative in the market and took the first step towards the formation of a downward trend segment. Therefore, we recommend trading downwards with the support levels of 147.43 and 143.95 as long as the price does not consolidate above the Kijun-sen line. Take Profit in this case can be up to 7,300 points. Also, short positions can be opened with the targets of the Kijun-sen line (152.37) and the level of 147.43 with a clear rebound from the level of 156.43.

Forecast and trading signals for Bitcoin.

Explanation of the illustrations:

Price levels of support and resistance (resistance/support) – target levels when opening purchases or sales. You can place Take Profit levels near them.

Kijun-sen and Senkou Span B lines – the lines of the Ichimoku indicator, moved to the hourly timeframe from the 4-hour one.

Support and resistance areas – areas from which the price has repeatedly bounced before.

Yellow lines – trend lines, trend channels, and any other technical patterns.