Disclaimer: The results of the following analysis are the author’s opinions only and should not be considered investment advice.
Bitcoin’s growth over the past month has accelerated bullish recovery efforts in the cryptocurrency market. The spillover effects of this growth in the altcoin market have been quite evident, especially with double-digit monthly gains.
As a result, Litecoin [LTC] Buyers found renewed pressure encouraging its recovery after 20 EMA (red) and 50 EMA (cyan).
A possible close above the immediate ceiling could increase the chances of an extended uptrend in the coming times. At the time of writing, LTC is trading at $61,175.
LTC daily chart
The altcoin’s efforts to turn the bearish trend are finally paying off after reviving more than a third of its value in the past three weeks. With a bullish channel (white) in place, the bulls have established their foothold outside the 20/50 EMA boundary.
Since flipping five-month trendline resistance into support, the bulls have been scrambling to capture the $61-$62 range resistance. With the 20 EMA (marked in red) continuing to the north, a buyback could set the stage for a continuation of the pattern’s volatility. In this case, the potential targets may lie in the region of $68, near the upper trendline of the ascending channel.
The bulls need to find a close above the immediate resistance range to increase chances of a sustainable recovery. Any break below the pattern indicates reversal trends and can confirm short selling signals.
The Relative Strength Index (RSI) struggled to maintain a position beyond the 60 mark while imagining a slight edge for the bulls. A sustained impact above the equilibrium zone will play in the bulls’ favour.
With that said, a bullish divergence on OBV can help buyers hold onto the current pattern and continue the growth phase. However, it needed to break the resistance to confirm a strong buying advantage.
Also, the MACD lines experienced a bullish edge while hovering above the zero mark.
Given the bullish crossover of the 20/50 EMA combined with the bullish engulfing candlestick on the daily chart, buyers will aim to continue the pattern. The objectives will remain as discussed. A reversal from the $68 area or the lower trend line of the pattern could signal a sell signal.
Finally, LTC shares a 95% 30-day correlation with the King Coin. Therefore, it is necessary to closely monitor the movement of Bitcoin to make a profitable move.