Litecoin is Yet to Shine

October has brought a bullish market structure for Litecoin, much to the delight of investors and traders. If you don't yet hold Litecoin in your portfolio but are looking to diversify and reduce overall risk, the current valuation offers a favorable entry point.

Additionally, Litecoin provides an attractive risk-to-reward ratio, making it a worthwhile consideration.

Daily time frame analysis

LTCUSD - 1 Day Time Frame

Beyond the bullish market structure, additional technical parameters such as initial liquidity selection, Order Block, and support zone play a crucial role in the analysis.

At BITmarkets, we closely monitor liquidity selection because it signals opportunities for high-volume market participants—typically the most profitable players in the long run.

In Litecoin's case, liquidity was withdrawn twice, the first time falling below its 2023 low. For retail traders, who may lack insights into the activity of large commercial participants, chart confirmation becomes essential.

One preferred signal is the IFVG (Inefficient Fair Value Gap), which occurs when the price closes above resistance. While this signal has been created earlier, the support zone now becomes a critical criterion for staying in a confirmed buy position.

When to buy Litecoin?

Based on these technical parameters, traders can consider entering a buy position, placing a Stop Loss below the internal higher low. As highlighted, the support zone currently serves as the key indicator of bullish strength.

If the price closes below this zone on the daily timeframe (shown in blue on the chart), it may be advisable to sell off part of the position. Otherwise, holding the full volume is possible, aiming for the designated Buy-Side Liquidity targets.