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Litecoin Makes New 2022 High Against Bitcoin – But Will LTC Price “Halve” Before Halving?

Published on

January 23, 2023
Read Time:3 Minute, 7 Second

Litecoin (LTC) has emerged as one of many uncommon winners from the continuing cryptocurrency market collapse sparked by the collapse of the FTX trade.

LTC value beats BTC, ET

Born in 2011, the altcoin is up almost 16% month-to-date (MTD) to hit $62.75 on Nov. 22, outperforming its high friends bitcoin (BTC) and ether (ETH), that are down about 25% and 30%, respectively , In the identical interval.

LTC/USD day by day chart. Supply: TradingView

Moreover, the LTC/BTC value additionally surged to new highs, surging 50% in November to hit a brand new yearly excessive of 0.003970 BTC on Nov. 22.

As Cointelegraph reported, Litecoin is deviating from the broader cryptocurrency market downtrend earlier this month, with the halving scheduled for August 2023. LTC additionally acquired one approval by none apart from Michael Saylor for being a Bitcoin-like “digital commodity.”

says Michael Saylor #Litecoin might be additionally a digital commodity like Bitcoin: pic.twitter.com/7N19IpxtSe

— Altcoin Day by day (@AltcoinDailyio) November 18, 2022

Nonetheless, indicators of bullish exhaustion are rising.

Litecoin value fractal suggests 50% correction

Litecoin's rally in opposition to Bitcoin has left the LTC/BTC-Pai overvalued in line with its weekly Relative Power Index (RSI).

Notably, LTC/BTC's weekly RSI, which measures the pair's pace and variance in value actions, surged above 70 on Nov. 22. An RSI studying above 70 is taken into account overbought, which many conventional analysts see as an indication of an imminent bearish reversal.

Traditionally, Litecoin's overbought RSI readings in opposition to Bitcoin have been adopted by main value corrections. For instance, in April 2021, the LTC/BTC RSI surge above 70 met a powerful sell-off response that finally pushed the pair down 75% to 0.001716 BTC by June 2022.

Equally, an overbought RSI in April 2019 led to a 70% LTC/BTC value correction by December 2019.

The identical RSI fractal now suggests the potential of Litecoin struggling a 50 % obliteration in opposition to Bitcoin when paired with LTC/BTC's multi-year descending channel sample, as proven beneath.

Weekly LTC/BTC value chart. Supply: TradingView

Sometimes, LTC/BTC turns into overbought after reaching the higher trendline of the channel, adopted by a correction in direction of the decrease trendline.

In consequence, the pair dangers a drop to or beneath 0.001797 BTC by December 2022 when the fractal repeats, a greater than 50% drop from present value ranges.

Conversely, a decisive break above the higher trendline might see LTC/BTC testing its 200-week exponential shifting common (200-week EMA; the blue wave) at 0.005319 BTC, up 30% from that present value stage as the following upside goal.

LTC/USD Bear Flag Pair

Litecoin is seeing an identical value drop in opposition to the US Greenback because it plots a bear flag sample on the weekly charts.

Associated: Cathie Wooden's ARK Make investments Provides Extra Bitcoin Publicity as GBTC, Coinbase Shares Hit New Lows

Bear flags are bearish continuation patterns that seem when value consolidates to the upside inside a parallel ascending channel space after a powerful transfer down (known as a flag stand). They resolve after the worth falls beneath the decrease trendline and falls across the peak of the flagpole.

Weekly LTC/USD value chart. Supply: TradingView

LTC has been buying and selling contained in the bear flag vary and eyeing a breakdown beneath its decrease trendline assist round $55. The bear flag draw back goal is round $32.40 if it falls decisively beneath mentioned assist.

In different phrases, a 50% drop by December 2022.

This text doesn't include any funding recommendation or suggestion. Each funding and buying and selling transfer entails danger and readers ought to do their very own analysis when making a call.

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Azeez Mustafa
Azeez began his FinTech career path in 2008 after growing interest and intrigue about market wizards and how they managed to become victorious on the battlefield of the financial world. After a decade of learning, reading and training the ins and outs of the industry, he’s now a sought after trading professional, technical/currency analyst and funds manager – as well as an author.
Last Updated : January 23, 2023
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