November 28, 2022

Home Litecoin Litecoin hits recent 2022 excessive versus Bitcoin — However will LTC worth 'halve' earlier than the halving? – Cointelegraph

Litecoin hits recent 2022 excessive versus Bitcoin — However will LTC worth 'halve' earlier than the halving? – Cointelegraph

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Litecoin diverged from the broader crypto market downtrend within the months main as much as its halving in August 2023.

Altcoin Watch

Litecoin (LTC) has emerged as one of the rare winners within the ongoing cryptocurrency market meltdown led by the FTX exchange’s collapse.

LTC worth outperforms BTC, ETH

The 2011-born altcoin rallied almost 16% month-to-date (MTD) to achieve $62.75 on Nov. 22, outperforming its high rivals, Bitcoin (BTC) and Ether (ETH), which misplaced roughly 25% and 30%, respectively, in the identical interval.

LTC/USD each day worth chart. Supply: TradingView

Moreover, the LTC/BTC worth additionally rallied to new heights, gaining 50% in November to determine a brand new yearly excessive of 0.003970 BTC on Nov. 22.

As Cointelegraph reported, Litecoin diverged from the broader cryptocurrency market downtrend earlier this month with its halving slated for August 2023. LTC has additionally acquired an endorsement from none aside from Michael Saylor for being a Bitcoin-like “digital commodity.” 

Nonetheless, indicators of bullish exhaustion are rising.

Litecoin worth fractal hints at 50% correction

Litecoin’s rally versus Bitcoin has made the LTC/BTC pair overvalued, in accordance with its weekly relative energy index (RSI) studying.

Notably, LTC/BTC’s weekly RSI, which measures the pair’s velocity and alter of worth 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 impending bearish reversal.

Traditionally, Litecoin’s overbought RSI readings versus Bitcoin have been adopted by main worth corrections. As an illustration, in April 2021, the LTC/BTC RSI’s climb above 70 met with a powerful sell-off response, finally pushing the pair down by 75% to 0.001716 BTC by June 2022.

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

The identical RSI fractal now hints at Litecoin’s risk of present process a 50% wipeout versus Bitcoin if coupled with LTC/BTC’s multi-year descending channel sample, as proven under.

LTC/BTC weekly worth chart. Supply: TradingView

Usually, LTC/BTC turns overbought after hitting the channel’s higher trendline, which follows up with a correction towards the decrease trendline.

Because of this, the pair dangers dropping to or under 0.001797 BTC by December 2022 if the fractal repeats, down greater than 50% from the present worth ranges. 

Conversely, a decisive breakout above the higher trendline might have LTC/BTC take a look at its 200-week exponential shifting common (200-week EMA; the blue wave) at 0.005319 BTC, up 30% from present worth ranges, as the subsequent upside goal.

LTC/USD pair “bear flag” 

Litecoin is eying an analogous worth crash versus america greenback because it paints a bear flag sample on the weekly charts.

Associated: Cathie Wood’s ARK Invest adds more Bitcoin exposure as GBTC, Coinbase stock hit new lows

Bear flags are bearish continuation patterns that seem when the worth consolidates greater inside a parallel, ascending channel vary after a powerful transfer decrease (known as flagpole). They resolve after the worth breaks under the decrease trendline and falls by as a lot because the flagpole’s peak.

LTC/USD weekly worth chart. Supply: TradingView

LTC has been buying and selling contained in the bear flag vary, eyeing a breakdown under its decrease trendline assist of round $55. The bear flag draw back goal is round $32.40 if it breaks decisively under the stated assist — i.e., a 50% decline by December 2022. 

This text doesn’t comprise funding recommendation or suggestions. Each funding and buying and selling transfer entails danger, and readers ought to conduct their very own analysis when making a choice.

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