Litecoin, buy or sell?BITFINEX:LTCUSD
If Bitcoin is the analogy for "gold", Litecoin is the analogy for "silver", now the fundamentals of the Litecoin suggest to buy or sell? My latest research shows that the Litecoin factor can explain 88% of the the logarithm of Litecoin price.
The Litecoin factor indicator is calculated by Litecoin fundamental factor, it can reflect how much of the Litecoin price is supported by the fundamentals.
The green line is the Litecoin factor in the chart, the trend of it are in conformity with the price.
the orange line is the correlation coefficient between the Litecoin price and the Litecoin factor in the 8 years, its value in November 16, 2021 is 0.86, shows that the Litecoin prices are mostly by the Litecoin factor influence.
Yellow line is Litecoin forecast price, the Litecoin factor, and the linear regression method are used to calculate. You can see, the prices fluctuating around the predicted price, it is in line with the principle of price fluctuates around value.
The purple line is determination coefficients (R2) of 8 years logarithmic Litecoin predicted price, which represents the prediction accuracy, the value of 88% on November 16, 2021.
The blue line is factor indicator, which swings between -1 to 2, red background when early warning index greater than 0.8, the price in the peak, said green background when factor indicator is less than -0.6, the price in the trough.
On November 16, 2021, the factor indicator of -0.82, is near of -1, shows that the Litecoin price is near of the trough.please pay attention to the buying chance.
Do you think you should buy or sell Litecoin now? Please comment, we communicate each other.
