The LTC retracement phase is bound for correction at first since the technical indicators show that the coin will correct first before going bullish as we are reading more about it in the Litecoin news today.
The recent rally that has pushed the price of the asset up by more than 33 percent since January, could soon find to be exhausted. Based on the TD Sequential indicator, the LTC retracement could be underway. The technical index is now presenting a sell signal in the form of a green nine on the 1-day charts and this bearish formation estimates that this cryptocurrency could even pull back for one to four candlesticks before starting a new bullish trend.
Increasing the selling pressure behind Litecoin could even confirm the bearish signal that is presented by the TD sequential indicator and upon confirmation, LTC could even plunge to look for support around the 61.8% or the 50% Fibonacci retracement level. Pulling back to the 61.8% Fibonacci retracement zone could even be seen as a sign that Litecoin’s bullish trend will remain stable. Some could think that an increase in demand for the crypto could even reach the $45 area and the 61.8% Fibonacci retracement level is seen as the golden retracement zone because of the high probability of a rebound.
Despite the bearish short-term outlook, the TD sequential indicator presents an increase in the buying pressure around the current price levels and if Litecoin manages to close above the high of $51.8 with enough volume, it could surge further and test the 12.72% Fibonacci retracement level at $56. Shutting down this major barrier of resistance could increase the probability of another move up to the 20% Fibonacci retracement level to $67.4. Willy Woo is an on-chain analyst and partner at Adaptive Capital that believes the Litecoin’s price action will be used as an indicator of where Bitcoin is going next. According to Woo, LTC will lead the Bitcoin price at the moment.
If Litecoin does manage to bound for a correction it could even bring the whole market down along. An increase in demand however, could jeopardize the entire bearish outlook and take this crypto into new highs. Woo confirmed that Litecoin looks bullish in the long-run.
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