Litecoin has had a brutal “bull market” in the event you may even name it that for the as soon as widespread cryptocurrency constructed on Bitcoin’s code. Nonetheless, that each one may quickly flip round, as an enormous bounce is brewing on the LTCBTC buying and selling pair.
A reversal on the buying and selling pair may assist Litecoin catch as much as the remainder of the market, which has already set new all-time highs after which some. If and when LTC recovers towards BTC, the upside may very well be swift and violent. Right here’s why.
How Lengthy It’s Been Lights Out For This Altcoin’s Bull Market
Evaluating Litecoin’s chart subsequent to the likes of Dogecoin, Ethereum, Bitcoin, Binance Coin, and a number of other others, reveals simply how darkish the depths of the crypto winter obtained for the altcoin.
Litecoin was an unimaginable performer on the peak of the final bull market, rising to past $360 per LTC in a flash.
The altcoin additionally led the cost within the 2019 crypto market restoration, fueled by buzz surrounding the protocol’s block reward halving.
Associated Studying | Why Litecoin Is The Subsequent Crypto To “Teleport” Like Dogecoin
Litecoin’s code is similar to Bitcoin’s, giving it a number of key similarities that ought to be benefiting the “digital silver” counterpart at present, akin to hard-coded shortage.
Solely 84 million LTC exist, a mere 4 occasions the quantity of the BTC provide. And if shortage is driving the demand behind Bitcoin, the truth that Litecoin isn’t in any respect following is complicated.
However a bounce is due, in line with one crypto analyst‘s interpretation of the LTCBTC value chart.
A hidden boring div on the OBV may set off a breakout of the falling wedge | Supply: LTCBTC on TradingView.com
Sensible Cash Indicators That Litecoin Is Prepared To Bounce Towards Bitcoin
The dealer who shared the above chart says that LTCBTC is at present at long-term assist of a falling wedge, coinciding with a bullish divergence on the on-balance quantity indicator (OBV).
The OBV is usually thought to be the “sensible cash indicator” – named as such for its skill to choose up alerts of actions earlier than they start to take impact in value motion.
These alerts symbolize “sensible cash” taking positions early earlier than markup. Fractals from the final bull market recommend {that a} breakout is close to, however holders of the coin are taking their time.
Associated Studying | This LTC Fractal Says Time Is Working Out To Accumulate At Low Costs
Dropping assist would take LTCBTC to the bottom ranges but, however a full reversal right here may take the altcoin again to highs on its ratio towards Bitcoin.
Litecoin is without doubt one of the oldest cryptocurrencies and one of many few to hold onto the highest ten property by market cap for a number of years at a time, even regardless of an incapacity to reclaim its former value document.
Will Litecoin lastly bounce towards Bitcoin and make a full restoration?
Featured picture from Deposit Images, Charts from TradingView.com
