Litecoin price is trying to lay the foundation for a bullish trend

Litecoin price is trying to lay the foundation for a bullish trend

Bitcoin & Litecoin Bullish AND Bearish Targets


Litecoin price is trying to lay the foundation for a bullish trend

  • Litecoin is trading near an important resistance level of $ 63.

  • Price Bullish Breakout of Inverted Head and Shoulders.

  • Price is likely to start a bullish impulse move.

Litecoin price is trying to lay the foundation for a bullish trend

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Litecoin (LTC) rate is approaching an important resistance level of $ 63, a bullish breakdown of which will indicate a bullish trend in the currency.

No signs of weakness have been seen yet and price is expected to make a bullish breakout.

Long term resistance levels

The LTC rate is trading near the important resistance level of $ 63. Since September 2019, he has alternately played the role of both resistance and support. Also here is the Fibo level 0.618 of the correction of the recent decline that began in February 2020.

Last week, the price formed a bullish engulfing candlestick on the chart, rose significantly and almost reached the $ 63 area. Against this background, the weekly RSI index moved above the 50 mark, and the slope of the stochastic oscillator increased.

These are bullish signs that indicate that the price is ready to continue rising. If it succeeds in breaking through the $ 63 area, the next resistance will meet at $ 84.5.

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Litecoin price is trying to lay the foundation for a bullish trend

LTC chart. Source: TradingView

Litecoin price is trying to lay the foundation for a bullish trend

Cryptocurrency trader @TheTradingHubb shared an LTC chart on Twitter, noting that the market has reached important resistance, a breakout of which would be an extremely bullish signal.

Source: Twitter

At the time of writing the analysis, the Litecoin rate was trading directly in the area of ​​convergence of the downward resistance line from the historical high and the upward support line built from the March low.

However, these lines can only be seen on a logarithmic graph, which reduces their significance. However, their bullish breakout would still be an important bullish signal, especially given that it would mean a break above the previously indicated horizontal levels..

LTC chart. Source: TradingView

Bullish breakout of the pattern

The daily chart paints a bullish picture. Here, price has made a bullish breakout of the inverted head and shoulders pattern (H&S) with a neckline at $ 51.

Subsequently, the market passed the entire height of this pattern and reached a high of $ 60 on October 25. At the same time, technical indicators still show no signs of weakness. MACD, RSI and Stochastic Oscillator continue to rise and do not show bearish divergence.

The $ 63 area is represented by a horizontal level, which enhances its significance. On the other hand, the broken $ 51 level should now play a support role.

LTC chart. Source: TradingView

Wave analysis

Long-term wave analysis is not entirely clear. It looks like after hitting a low on September 23rd, the LTC rate started a bullish impulse move (black on the chart). In this case, the price is now in the 3rd, extended, wave with the target at $ 66.472 (Fibo 3.61 of wave 1 extension). Absorption of the high of wave 1 (black line) at $ 48.57 will cancel this scenario.

The sub-wave analysis of the extended 3rd wave is shown on the chart in blue. The target for the top of wave 3 ($ 64.9) coincides with the longer term. This increases the bulls’ chances of achieving it. A decline below the high of sub-wave 1 by $ 51.69 (blue line) will neutralize this sub-wave analysis, but the longer term (black) will still remain in effect..

LTC chart. Source: TradingView

Thus, the LTC rate has started a bullish impulse move and may strengthen towards the resistance levels we indicated above.

You can read the latest Bitcoin forecast here.

Disclaimer: Cryptocurrency trading involves a high level of risk and is not suitable for all investors. The opinion expressed in this forecast does not reflect the opinion of the editorial staff of BeInCrypto.


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