The crypto markets have been burgeoning in the past week or so, as Bitcoin (BTC) has led the way up to the limits of its long term downtrending structure. Both major and midcap altcoins have started to shine, and leading altcoin Litecoin (LTC) has been among them with some very interesting strength coming in.
We start with a 3-day LTC/Bitcoin chart, and immediately notice the huge shift in the volume profile (Binance), with considerable buying coming in over the past week or so. We also see that a bull divergence is showing up on the RSI. Litecoin has surged about 25% from its recent bottom, but its rise was stopped exactly at the December 2018 bottom at ₿0.00688.
Here, we have another shot at a reversal of Litecon’s brutal downtrend, in play since April 2019 (versus Bitcoin). We see that a bullish histogram contraction is cooling off, so far, and a reversal is nowhere yet confirmed. But it looks very interesting.
On the LTC/BTC daily chart with Bitcoin comparison, we must note the new paradigm of altcoins: they have begun to rise with Bitcoin, rather than dump whenever Bitcoin has a big move. This is a dramatic reversal from the H2 2019 paradigm, and is seeming to go hand-in-hand with a decline in Bitcoin dominance.
It is also notable that Bitcoin’s price has continued to rise even as its market dominance has started to ebb away from the historically high 70% area.
Finally, on a daily LTC/USD chart, we see that the uptrend from the past couple of weeks has reached overbought conditions, and that price has run far away from the moving averages. With a nice reversal candle put in yesterday, we are likely to see a selloff back down into the blue support zone.
Ultimately though, Likecoin looks very good for a long term reversal. It has been stuck under the 55 EMA since July, and this level looks to have been solidly retaken by now. Many altcoins look ready for reversal after months of brutal selling and then accumulating – and Litecoin led the 2019 rally from the bottom, lest we forget.
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