Litecoin Breaks Up Channel to the Downside to Resume Selloff
The selloff on Litecoin (LTCUSD) continues with its downside break of the up channel, as seen on the daily chart. The selloff in the cryptocurrency market enters its second day, as the Bakkt launch of Bitcoin futures did little to prop up prices. Many cryptos that track the price of BTC are seeing a resolution of the bearish patterns which the price activity of the last few weeks has created.
When the price activity on LTCUSD since August 2019 till date is considered, it can be seen to resemble a bearish flag. The downside break of the flag consolidation area is a completion of the pattern.
The initial downside price target for Litecoin is located at 61.33. If the measured move of the bearish flag is used, it gives a potential downside target that could extend as low as $45, which will take out the previous highs seen in March 2019 at 54.45, acting in role reversal.
On the flip side, a bounce on 61.33 without a successful break could lead to upside recovery that would target 70.36 (May/August 2019 lows in role reversal). Above this level, 78.21 comes into focus.Download our latest quarterly market outlookfor our longer-term trade ideas.
Do you enjoy reading our updates? Become a member today and access all restricted content. It is free to join.