Skip to main content

WATCH: Can Litecoin Lead A Crypto Recovery (Again?) | Daily TA August 29, 2022

In this episode of NewsBTC’s all-new daily technical analysis videos, we are looking at Litecoin, the LTCBTC and LTCETH trading pairs, and how the cryptocurrency could lead the crypto rally and outperform both Bitcoin and Ethereum.

Take a look at the video below.

VIDEO: Litecoin Price Analysis (LTCUSD): August 29, 2022

Litecoin went from an enthusiast favorite during the 2017 bull run to one of the most hated coins due to its laggard tendencies and limited design. Although naysayers do have a point, the cryptocurrency works a lot like Bitcoin but faster.  It also enjoys regulatory acceptance allowing to on the list of major brands like PayPal – in which it is the cheapest coin on the list.

Litecoin Weekly Could Trigger RSI Buy Signal

Looking at the weekly Relative Strength Index and LMACD, things look a lot more healthy for Litecoin than other top cryptocurrencies. With a little push, Litecoin could set a higher high on the RSI. This is a buy signal according to the tool’s creator, J. Welles Wilder Jr. and in the past it started off major bull runs in LTC, especially when combined with a breakout of RSI downtrend resistance line.

Using time cycles, we can see that the RSI, LMACD, and price bottoms at similar points. Hurst cycle theory allows for cycles to be up to 10% out of phase in either direction. The slight discrepancy in the rhythm at our current bottom is totally within an acceptable range. Finally, the LMACD has topped and bottomed at the same converging trend lines all throughout the history of Litecoin price action. Litecoin has potentially found support at this very trend line.

Has Litecoin found a bottom? | Source: BTCUSD on TradingView.com LTCBTC: Momentum Might Be Ready To Change In A Major Way

Switching over to the LTCBTC trading pair, we can see that the monthly LMACD is turned green and the RSI has broken out of a downtrend resistance line. Much like the USD pair, making a higher high could be a sign of a buy signal. 

The previous cycle on the ratio followed a similar pattern. The first attempt at breakout out and crossing bullish fails, leading to more downside. The second attempt was likely subject to similar sentiment as there is now. The previous failure combined with relative underperformance next to BTC caused Litecoin holders to capitulate right before the eventual turning point – turning pointed that gave over 500% overperformance against Bitcoin.

A major momentum change could confirm | Source: LTCBTC on TradingView.com LTCETH: Can The Dying Altcoin Defeat The Merge

Litecoin outperforming Ethereum is a tougher sell considering the upcoming Merge. The merge will improve Ethereum tokenomics toward price appreciation, making the cryptocurrency very attractive by comparison. However, even the LTCETH trading pair looks as though momentum is ready to turn.

Can momentum turn even with the Merge on its way? | Source: LTCETH on TradingView.com Comparing Coins: Bitcoin And Ethereum Long-Term View

In our last chart, we once again are comparing Litecoin to Bitcoin and Ethereum, but side by side using USD pairs to demonstrate that Litecoin tends to outperform both assets towards the end of a crypto market cycle. Although Litecoin lags behind Bitcoin, clearly during the last cycle once momentum turned, the move was massive. Litecoin rallied from $4, to $400 per coin in just over two-thirds of a year.

Will Litecoin outperform again? | Source: BTCUSD on TradingView.com

Learn crypto technical analysis yourself with the NewsBTC Trading Course. Click here to access the free educational program.

Follow @TonySpilotroBTC on Twitter or join the TonyTradesBTC Telegram for exclusive daily market insights and technical analysis education. Please note: Content is educational and should not be considered investment advice.

Featured image from iStockPhoto, Charts from TradingView.com

from NewsBTC https://ift.tt/Je2SuIT
via IFTTT
Labels:

Comments

Post a Comment

Any questions, Please.

Popular posts from this blog

Korean crypto ‘Jedi Master’ plans to launch second VC blockchain fund

Blockchain VC investment firm Hashed is seeking $173 million for a second fund. One of South Korea’s leading blockchain evangelists is embarking on another huge blockchain fundraise following the success of his first. Simon Seojoon Kim is planning to raise $173 million for a second blockchain fund following the success of the initial one which netted $120 million from investors in December 2020 . Specifics regarding the new fund and its potential investors are thin on the ground however. Kim, dubbed “the Jedi Master of cryptocurrency” by Sean Park, a senior partner at Hong Kong-based Boston Consulting Group, co-founded the blockchain and crypto venture capital firm Hashed in 2018. The firm invests in crypto startups to enable them to grow through staff expansion, partnerships and marketing. It has attracted big-name financiers such as Naver, South Korea’s third-largest company by market value, which invested $12 million in the first Hashed blockchain fund. The Seoul-based compan...
Post a Comment
Read more

Whale clusters suggest that this key Bitcoin level can trigger an explosive rally

Bitcoin whale clusters show $57,046 and $60,045 are the crucial support and resistance levels in the short term. The price of Bitcoin ( BTC ) is attempting to break the $60,000 resistance level after more than a week of ranging. Whale clusters show that $57,046 and $60,045 are the crucial support and resistance areas in the short term.  In other words, the probability of a strong breakout in the foreseeable future would increase substantially if Bitcoin stays above $57,046 and continues to test $60,000 resistance. Why whale clusters are important for Bitcoin Whale clusters form when high-net-worth investors buy or sell Bitcoin at a certain price and do not move their holdings thereafter. As such, a whale cluster support typically serves as a strong macro support area for Bitcoin because whales tend to buy more when BTC falls to a level where they initially bought BTC. On the flip side, a whale cluster resistance area would likely hold up as a sell area because whales are mo...
Post a Comment
Read more

TA: Bitcoin Recovers Heavy Losses, Why BTC Could Resume Decline

Bitcoin price declined over 15% and tested $42,000 against the US Dollar. BTC is recovering, but it could face sellers near the $48,500 and $49,000 resistance levels. Bitcoin started a major decline below the $50,000 and $48,500 support levels. The price is now trading well below $50,000 and the 100 hourly simple moving average. There was a break below a key bullish trend line with support near $52,150 on the hourly chart of the BTC/USD pair (data feed from Kraken). The pair is correcting losses, but the bears are likely to remain active near $48,500 and $50,000. Bitcoin Price Recovers Above $45K Bitcoin price failed to clear the $53,000 zone and started a major decline. BTC broke the key $52,000 support zone and the 100 hourly simple moving average to into a bearish zone. There was also a break below a key bullish trend line with support near $52,150 on the hourly chart of the BTC/USD pair. The pair even declined heavily below the $48,500 support zone. Finally, there was a spi...
Post a Comment
Read more