Litecoin (LTC) keeps on testing the 38.2% fib extension level but it lacks the momentum to break past it. However, it has not faced a strong rejection either. In classic technical analysis, when the price keeps testing a certain level whether as support or resistance, it is very likely to eventually break it. So, if LTC/USD keeps testing this level, we are likely to see it break to the upside to test the 50 day EMA again. It is premature to say if it will end up rising as high as $100 to form another shoulder of the head and shoulders formation that is in the making on the daily chart. Earlier, a lot of traders assumed that we already have the right shoulder but now it is becoming clearer that we might still see the right shoulder form and the price could rally higher from here.
The price of Litecoin (LTC) is on the verge of a breakout. The daily RSI shows that there is plenty of room for a rally to the upside. In the past LTC/USD has been a leading indicator of what happens to Bitcoin (BTC). It is likely that the same could happen again. If LTC/USD closes above $71, we will have confirmation that further upside could follow in the cryptocurrency markets.
For the past two months, LTC/USD has been in a steady decline and there is no denying that it has topped out. I don’t see LTC/USD rallying towards a new yearly high from here. However, that being said, it does not mean that we cannot see further upside from here after weeks of continuous downtrend. Now that the price keeps on testing the 38.2% fib extension level, the probability of a big move to the upside is even higher.
Litecoin (LTC) has already broken a key trend line resistance against Bitcoin (BTC) which is another strong reason why we expect further upside from here. We are likely to see LTC/BTC rally towards the next trend line resistance and that is when we will also see a retest of the 50 day EMA. The RSI shows that there is plenty of room for such a move which means that the odds of Litecoin (LTC) rallying against Bitcoin (BTC) are quite high from this point forward.
It is important to realize that Litecoin (LTC) would not be breaking a key trend line resistance against Bitcoin (BTC) if it did not mean to rally against Bitcoin (BTC) short term. Now that LTC/USD has broken past two key horizontal and trend line resistances, it is reasonable to expect that it might keep on rallying. This rally would likely coincide with a break past $71 in LTC/USD and we might see it rally towards $100 in the days and weeks ahead while Bakkt keeps the euphoria high. That would also be the time when most people would buy the top and be left holding the bags when LTC/USD makes an even bigger move to the downside.
Litecoin Price Analysis: LTC/USD has broken out of an intraday chart pattern
- Litecoin trades 2.33% higher on Tuesday as cryptocurrency sentiment improves.
- This move could price the pullback over the last few days was just a blip.
LTC/USD 1-Hour Chart
Litecoin is breaking higher today like much of the other cryptos on Tuesday.
The sell-side volume is still much larger so we would need a pick up to ensure the market is behind this move.
At the moment 70.00 seems to be a good area of support for LTC/USD and a break of the 77.30 resistance would be a good sign for the bulls.
On the daily chart, the shadows (wicks) at the bottom of the candles indicate the buyers are stepping back in.
The level that needs to be taken out on the higher timeframe is 84.50.
|Today last price||75.5522|
|Today Daily Change||2.1365|
|Today Daily Change %||2.91|
|Today daily open||73.4157|
|Previous Daily High||75.4404|
|Previous Daily Low||68.69|
|Previous Weekly High||84.4232|
|Previous Weekly Low||72.4372|
|Previous Monthly High||70.0854|
|Previous Monthly Low||38.7677|
|Daily Fibonacci 38.2%||71.2686|
|Daily Fibonacci 61.8%||72.8617|
|Daily Pivot Point S1||69.5903|
|Daily Pivot Point S2||65.765|
|Daily Pivot Point S3||62.84|
|Daily Pivot Point R1||76.3407|
|Daily Pivot Point R2||79.2657|
|Daily Pivot Point R3||83.091|
Litecoin’s bullish divergence could facilitate 9% rise this week
Litecoin has recorded some much-needed upward price-action this year. After a staggering 40% drop over the last two months of 2019, LTC appreciated by nearly 76% year-to-date in 2020. According to CoinMarketCap, Litecoin had a market capitalization of over $4.58 billion, with $5 billion worth of Litecoin traded over the last 24 hours, at press time.
Litecoin 1-hour chart
Source: LTC/USD on TradingView
Litecoin appeared to have dropped into a symmetrical triangle formation over the last few days. These patterns are mostly bullish, indicating that an upward breakout might be on its way. The accompanying decreasing volume trend further confirms the pattern.
However, the EMA ribbons were seen moving above the price candles, something that is usually a sign of downward movement to come. Considering the fact that the latest candle on the chart was at the lower pattern boundary, this could be some cause for concern.
The Ichimoku Clouds also indicated some downward movement over the next couple of days. However, since the price was within the last cloud, consolidation seemed more likely.
While the last two indicators predicted downward or sideways movement, the Relative Strength Index (RSI) presented a case for bullish divergence. This happens when the price touches a new low as the RSI fails to do so. Bullish divergence is usually a sign of greener pastures and it could push Litecoin to the breakout point at $74.60 over the next few days.
Nevertheless, if Litecoin does break under the symmetrical triangle, a move under the $69 level seems highly unlikely as the price will probably find strong support there. This could form a busted symmetrical triangle, leading to a move back into the pattern, followed by a bullish breakout.
A move above the upper pattern boundary could push Litecoin to the $78 level, at the 38.2% Fibonacci retracement line, over the next few days.
Correlation with Bitcoin
CoinMetrics‘ data on Litecoin’s 180-day correlation with Bitcoin shows LTC‘s relatively stable correlation with BTC through the second half of 2019. However, it looks to have been rising since mid-December and it is currently at its highest level since April last year. With Bitcoin projected to move up in the short-term, Litecoin might seem some of that action too.
Despite bearish indications from EMA Ribbons and Ichimoku Clouds, the bullish divergence from RSI and the overall trend of upward breakouts for this pattern likely mean that Litecoin will appreciate in the short-term. LTC will probably move up to the $74.60 level, before breaking out to the $78 level over the next few days. Though there is potential for a downward-facing breakout, it is unlikely that Litecoin will move under the $69 level before returning to its bullish path.
Litecoin (LTC/USD) forecast and analysis on February 18, 2020
Cryptocurrency Litecoin (LTC/USD) is trading at 70.85. Cryptocurrency quotes are trading below the moving average with a period of 55. This indicates the presence of a bearish trend on Litecoin. At the moment, cryptocurrency quotes are moving near the lower border of the Bollinger Bands indicator stripes.
Litecoin (LTC/USD) forecast and analysis on February 18, 2020
As part of the Litecoin exchange rate forecast, a test level of 76.00 is expected. Where should we expect an attempt to continue the fall of LTC/USD and the further development of the downward trend. The purpose of this movement is the area near the level of 63.80. The conservative sales area for Litecoin is located near the upper border of the Bollinger Bands indicator strip at 85.10.
Cancellation of the option to continue the decline in the rate of Litecoin will be a breakdown of the upper border of the Bollinger Bands indicator stripes. As well as a moving average with a period of 55 and closing of quotations of the pair above the area of 85.60. This will indicate a change in the current trend in favor of the bullish for LTC/USD. In case of breakdown of the lower border of the Bollinger Bands indicator bands, we should expect an acceleration in the fall of cryptocurrency.
Litecoin (LTC/USD) forecast and analysis on February 18, 2020 implies a test level of 76.00. Further, it is expected to continue falling to the area below the level of 63.80. The conservative sales area is located is near the area of 85.10. The cancellation of the option of falling cryptocurrency will be a breakdown of the level of 85.60. In this case, we should expect continued growth.