After a perfect example of a consolidating asset price, Litecoin (LTC) broke out of a symmetrical triangle yesterday afternoon (June 6, UTC), precisely as Bitcoin (BTC) seemed to be entering a sharp correction into $7,000 territory.
Indeed, one might theorize that LTC’s breakout saved Bitcoin by pulling it out of a downward trajectory, which has resulted in a spectacular counter-rally up to $8,000 today.
The dynamics are most evident on the LTC/BTC chart, with price squeezed between the 21 EMA (4 hour) and the top of the pattern before the breakout. Price has far outpaced the trailing moving averages, but LTC is holding very well at its new levels suggesting a bull flag. If this is the case, a retrace may not be in the cards.
Moving to the daily LTC/BTC, we can see that the rally has halted precisely at historical support/resistance (S/R) around ₿0.0146. But again, price will probably have to let the 9 day EMA catch up (green, below) before another leg up.
Moving to the LTC/USD chart, things here look quite interesting. The USD chart looks poised to break out of its own consolidation pattern, which was quite similar to the LTC/BTC one. Price is squeezing in between roughly $102-114 dollars in this pattern, and now being squeezed under an important historical S/R zone from 2018 – a breakout from this level could be explosive.
(source: TradingView.com)
(source: TradingView.com)
Bitcoin, if it is held at $8,000, will probably correct some, and could send LTC/USD back down into the pattern for another cycle. This would give LTC/BTC time to gather some strength. All in all, Litecoin is looking very strong going into its halving season.
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