The aggregated crypto market has seen a sharp selloff today, which primarily stemmed from Bitcoin’s recent rejection at $10,000 that sent the crypto reeling back down to lows of $9,500. This has led most major altcoins – including Litecoin (LTC) – to see some notable downside.
Today’s market-wide bloodbath, however, may not be nearly enough to invalidate Litecoin’s bullish market structure, as the cryptocurrency is still trading significantly above its key near-term support level.
This strong support has led one analyst to note that LTC’s mid-term outlook is “insanely” bullish, suggesting it could soon incur some notable upwards momentum.
Litecoin Plummets 8% as It Shows Signs of Bearishness Against BTC
At the time of writing, Litecoin is trading down over 8% at its current price of $72.50, which marks a significant decline from daily highs of $80 that were set yesterday around the time Bitcoin began rallying up to $10,000.
The firm rejection BTC saw at $10,000, however, has sparked a short-term selloff that has sent shockwaves throughout the markets, with multiple major altcoins plummeting over 5%.
Against its Bitcoin trading pair, Litecoin has plummeted by 5%.
Bitcoin Jack – a top trader and analyst – recently noted that LTC’s current underperformance of BTC stems from a few bearish factors that it has been expressing over the past few days.
“LTC vs BTC >Daily close below red = bearish >Liquidity was not raided before this retest >Fading volume >Bearish retest until proven otherwise >Vague rising broadening wedge as top,” he explained.
$LTC vs BTC
>Daily close below red = bearish
>Liquidity was not raided before this retest
>Bearish retest until proven otherwise
>Vague rising broadening wedge as top pic.twitter.com/A2K3AcH3N1
— //Bitcoin 𝕵ack (@BTC_JackSparrow) February 22, 2020
LTC Still Highly Bullish Against USD Despite Short-Term Bearishness
In spite of the overt bearishness of Litecoin’s short-term market structure, analysts still believe it could see some notable mid-term upside against USD.
George, a well-respected trader, explained that he recently purchased spot LTC, noting that its weekly close was “insanely bullish” and that it will remain bullish as long as it holds above its key support at roughly $65 and continues moving higher during the week ahead.
“LTC: Just bought a spot bag of LTC again. Weekly closed insanely bullish and imo we’re just retesting demand here. Invalidation below red, first target weekly mid range,” he explained.
Just bought a spot bag of ltc again. Weekly closed insanely bullish and imo we're just retesting demand here. Invalidation below red, first target weekly mid range. pic.twitter.com/bRXTslMFcS
— George (@George1Trader) February 24, 2020
Although Litecoin’s general trend may be dependent on that of Bitcoin and the aggregated market, it does appear that it is poised to see some further short-term upside in the days and weeks ahead.
Featured image from Shutterstock.