After a dramatic Litecoin (LTC) breakout a couple of days ago on the LTC/BTC chart, LTC/USD has followed suit with its own breakout. Moreover, LTC/BTC seems to be consolidating again, and poised to again break one way or the other. The formation, coming off the back of a break up, looks more likely to be a bull flag and thus more likely to take another leg up. In short, Litecoin is looking good.
Looking at the LTC/USD chart, we can see a clear breakout on elevated volume into a new consolidation above. Bitcoin’s attempt at $8,000 probably had something to do with fueling this second Litecoin rally, even if it was tinier than the first.
LTC has easily held the 9 EMA trendline (four hour chart) with strong wicks indicating fast buying of the dips.
Moving to LTC/BTC, we get a clearer picture of the geography on the one hour chart (below). We can see that today’s breakout here looks more like just a shift in the same consolidation pattern, so we can call it what we want.
Volume is again consolidating, as price hugs the top of the downtrend side of the pattern. We might easily expect another break up in this auspicious position. A break down, instead, would probably find support at LTC’s breakout price at ₿0.0136. A successful retest of this area would build support for further moves up.
Whether or not Litecoin breaks up or down from these patterns probably depends, as usual, on what Bitcoin does. At the moment, Bitcoin looks fragile after failing to close the day above $8,000.
If we take a moment to look at the very big picture, we will notice that these small Litecoin movements are pretty important. Litecoin is eating away at a very important area of resistance around $120. If it can break above this level and retest it to confirm support, $145 and then $170 would be easily within reach.
And after that …
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