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Bollinger Bands Show A Squeeze Incoming For Litecoin

The legendary trader and creator of Bollinger Bands, John Bollinger will be at the Litecoin Summit next week. John is a certified financial adviser (CFA) and chartered market technician (CMT). He also has received the TSAA-SF Lifetime Award for Outstanding Achievement in Technical Analysis, the MTA (now the CMT) Annual Award for Outstanding Contribution to the Field of Technical Analysis, and the IFTA Lifetime Achievement Award.

John will be presenting Saturday, October 22nd in Las Vegas on "Trading Litecoin with Bollinger Bands"

It's interesting the timing of his presentation and the current Bollinger Band "squeeze" occurring with Litecoin on the weekly time scale.

The Bollinger Band "squeeze" occurs when the band width between the upper and lower compress. This occurs with low volatility and signals a likely trend change. History has shown with Litecoin that after a "squeeze" the price of litecoin has gone on a large run to the upside.

Furthermore, there is a nearly identical pattern that occurred at the bottom in 2015 and 2018. The same pattern occurred this year on June 13th, 2022. This pattern occurs when the litecoin price touches the lower Bollinger Band after a downtrend.

Also, this time the squeeze coincides with a cycle low reset on the LTCBTC pair, the roll-out of Litecoin's new MWEB update to mobile wallets, and the litecoin halving next year. These all could lead to a massive catalyst and rise similar to March 2017 after the SegWit adoption.

Similarly, to the Bolinger Bands, the master bands indicator shows a similar bottom pattern occurring in 2015, 2018, and now 2022.

This also happens to coincide with a similar bottom pattern on the LTCBTC also occurring on June 2022 that looks nearly the same as the March 2017 capitulation event. Which led to a large price increase for litecoin over the several months following.

The chart above also shows an increase in network growth of Litecoin compared to Bitcoin with Litecoin now having a 30% new user growth. Price has correlated to this growth up until 2017, will this correlation return resulting in a larger market cap for Litecoin?

Using these three charts, it looks like Litecoin has bottomed on both the Bitcoin and US dollar pairs. With John Bollinger making an appearance at the Litecoin Summit, one must assume he is also watching this indicator. Do you think the Litecoin bottom is in and it's ready to level up?

You can learn more about John Bollinger on his website.


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