Hello traders! Many probably know the Litecoin, which is one of the pioneer cryptocurrency. Currently, it is ranked #7 on the Coin Market Cap with a total capitalization of $3,646,956,474.
Let’s have a look at the Litecoin vs Bitcoin price potential for the medium term. Below is the 4-hour chart, where we can see the bottom established at 0.00511 BTC on March 12. This was the lowest price since December 2017, which means that soon there might be a buying opportunity.
But the question is when? If we look at the weekly chart above, LTC/BTC has reached the bottom of the descending channel and rejected it cleanly. This goes to show that Litecoin could have reached the bottom already.
But at the same time, on the lower timeframe – 4h chart, price doesnt’ show any bullish signs just yet. Recently LTC/BTC rejected the 78.6% Fibonacci retracement level applied to the last wave down. Also, price bounced off the 50 Exponential Moving Average and produced a new lower low. It could mean, that in the short to medium term, Bitcoin will continue to outperform the Bitcoin.
There are two major support levels to watch, any of which could be the starting point of a long term uptrend. The first is 50% Fibs at 0.005755 BTC, while the second is at 38.2% Fibs. The second support also confirmed by 327.2% Fibs applied to the recent corrective wave down and would play a key role in further price development.
It will be important to see rejection of any of the support levels first, before/if considering investing in the Litecoin. But overall, short term trend remains bearish.
Bias: Bearish while below 0.00615 BTC.
Potential Resistance Zone: 0.00600 – 0.00615 BTC
Potential Targets: 0.005755, 0.005600 BTC
Have a profitable trading!