LTC flips structure to bullish but why the macro trend is still bearish
Disclaimer: The findings of the next evaluation are the only opinions of the author and shouldn’t be thought-about funding recommendation
The motion of Litecoin on the value charts has a +0.96 correlation (30-day) with the motion of Bitcoin. This meant that the bullish phases of Bitcoin would additionally see worth appreciation for Litecoin. But, whereas Bitcoin broke out previous $45k and seemed to cement a flooring from which to provoke a bullish run, Litecoin struggled to set the next excessive.
LTC- 1D
Supply: LTC/USDT on TradingView
Litecoin has been on a downtrend since late November when the value dropped beneath $216 and retested it as resistance. Nevertheless, up to now two months, LTC has discovered some assist at $95-$100 and consolidated.
Furthermore, it has been in a position to break previous the $115.9 stage (dotted white) and, at press time, was straddling the $120 stage as assist. Does this imply {that a} bullish pattern has been established? Not fairly but.
Despite the fact that there was a market construction break, the longer-term pattern was nonetheless bearish. Within the subsequent few days, a run towards the $145-$150 space might materialize. Nevertheless, the value would want to flip $150 from resistance to assist.
Rationale
Supply: LTC/USDT on TradingView
What do the symptoms must say concerning the pattern of Litecoin? The RSI on the day by day chart had made its approach above the impartial 50 line to point out that some bullish momentum was seen up to now two weeks. If the RSI doesn’t head again beneath 40 and as an alternative rises previous the 60 mark once more, it will imply that robust bullish momentum was current as soon as extra.
Despite the fact that the Chaikin Cash Movement was properly above +0.05, the OBV confirmed that general, promoting strain has been better than shopping for strain. Subsequently, although the month of March has seen some shopping for (and the OBV displays it too), there has seemingly not been sufficient shopping for to shift the pattern to bullish.
Conclusion
The $115-$120 space of assist was more likely to function assist and LTC might transfer greater as soon as extra. But, the general pattern of bearishness has not modified so much. The dearth of great shopping for quantity up to now few months was obvious. Till $150 is flipped to assist, LTC would seemingly not have a bullish outlook on the longer timeframes.
