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Litecoin Prepares For A New Breakout, But Strong Resistance Ahead May Prevent Bulls + trader’s opinion

Litecoin Prepares For A New Breakout, But Strong Resistance Ahead May Prevent Bulls

While Bitcoin confidently closes new highs, Litecoin also does not graze the hind ones and, under pressure from bulls, has shown an extreme increase since the beginning of November. But will the bulls be strong enough to overcome the huge resistance ahead?

Bulls control the price of Litecoin, but there is one “but”

Litecoin, the sixth-largest cryptocurrency, followed Bitcoin with parabolic growth. In just 2 days, the crypto asset increased by 23% and reached just under $80. Despite strong bullish momentum, Litecoin has pulled back and is trading at $74.4 at the time of writing.

A rollback with an accompanying correction is a completely natural scenario for bulls. It is imperative for Litecoin right now to turn the resistance levels between $68 and $75 into its support line. However, Litecoin continues to stay within the upward channel. According to analysts, buyers who purchased about 2.6 million LTC at a support level between $68 and $70 played a significant role in this.

For today, the key resistance level for Litecoin remains the $75 mark. That is a critical price region, after a breakdown of which Litecoin opens the way to a new high of $80 and above.

LTC/USD 4-hour chart

Despite the bullish momentum, Litecoin may suspend its upward movement in the short term. That is signaled by the 4-hour LTC/USD chart, on which a rising wedge pattern has formed. This model can lose out for Litecoin in the form of the onset of a consolidation phase between $68 and $75 and a decrease in pressure from buyers.

If Litecoin does not receive support from the market at $75 or the monthly high of $77, the indicator SMA (Simple Moving Average) could retrace to $65.

On the other hand, the IOMAP IntoTheBlock pattern signals the continuation of Litecoin’s bullish dynamics. The cryptocurrency could close the gap to $80 by breaking the key resistance area between $75 and $76.6. Earlier in this price region, about 52,800 addresses bought about 2.1 million LTC.

Thus, before the breakout, Litecoin may enter a consolidation phase and trade in the $68 to $75 range for a while. After the completion of the correction, the cryptocurrency may make a rally and reach new highs.

LTC always “goes” for BTC, before there was such a correlation: if BTC costs 10,000 USD, then LTC is 100 USD. To date, the increase in BTC capitalization is overtaking LTC, but this is not a reason for the holders of this coin to worry; now Litecoin is in a growing channel, and until Bitcoin goes into a correction, LTC will continue to increase its price.