Litecoin Forming a Multi-Year Top Pattern May Cause an Epic Plunge

Tony "The Bull" Severino

5 years ago

3 mins read

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Litecoin, the silver counterpart to Bitcoin as digital gold, is often a leading indicator across the crypto market.

If one particular Litecoin chart is accurate, it could be signaling an epic plunge in altcoins against Bitcoin in the coming months.

Litecoin Leads the Way in Crypto, But Is It Toward an Epic Plunge?

Ever since the crypto bubble popped, altcoins have been falling in value to absolute extremes.

As much as 99% of the value has been completely erased from many top altcoins that were all the rage at the height of the bubble-induced irrational exuberance.

At the start of last year, altcoins like Litecoin and others showed a glimmer of hope that their woes were reversing.

Buzz surrounding Litecoin’s halving last year helped cause the altcoin to rise as much as 600% at its highs.

During this time, Litecoin led the crypto market into a reversal. But the reversal was later dominated by Bitcoin, which went on a parabolic rally from April 2019 to June 2019.

The monstrous rally in Bitcoin absorbed more of what little remaining value from the altcoin market, including Litecoin, which fell back to a low of around $35.

Not only did Litecoin lead the original rally, but it also led the market in decline following Bitcoin’s rally.

Once again, Litecoin has been leading the market, causing other altcoins to break out from downtrend resistance and help propel even Bitcoin to local highs.

The crypto market is convinced a new uptrend is forming, however, this may only be true for Bitcoin.

LTC/BTC Chart Shows Multi-Year Head and Shoulders Top

According to the LTC/BTC price chart, Litecoin could be forming a massive, multi-year head and shoulders top that could cause serious destruction to not only the value of Litecoin, but the entire altcoin market.

Altcoins typically rise and fall in tandem, and heavily rely on Bitcoin’s trend to dictate overall direction. However, oftentimes Bitcoin’s rallies cannibalize altcoins as a result of FOMO from one crypto asset to another.

Head and shoulders top targets are typically measured by the height of the head from the base of the trend line. This would result in an over 70% drop in Litecoin against Bitcoin on the LTC/BTC trading pair.

It also could mean a significant drop further in altcoins across the board, as Litecoin has historically acted as a leading indicator for the rest of the market.

Head and shoulders tops often also often result in a strong throwback to support turned resistance as can be seen in the chart examples above. This throwback would explain the current bullish rally, but would ultimately cause the rally to fail as a bearish retest before an epic plunge deeper.

Tony "The Bull" Severino

Tony "The Bull" Severino, CMT, is a distinguished figure in the cryptocurrency analysis sector, renowned for his in-depth technical expertise and innovative approach to market trends. As the Head of Research at NewsBTC, Tony leads a team dedicated to providing cutting-edge insights and forecasts, helping both novice and experienced traders navigate the complexities of the crypto market.
A seasoned Chartered Market Technician, Tony's prowess in identifying and capitalizing on market patterns is unmatched. His academic and professional journey in market analysis has firmly established him as a leading authority in technical trading strategies. Tony’s approach is heavily influenced by the principles of Elliott Wave Theory, a method known for its rigorous assessment of investor psychology and price movements.

Beyond his role at NewsBTC, Tony is the visionary founder of CoinChartist.io, an educational platform aimed at demystifying the nuances of cryptocurrency trading. CoinChartist.io serves as a valuable resource for traders seeking to enhance their technical analysis skills. The platform offers a range of learning tools and resources designed to empower traders with the knowledge to make informed trading decisions.

In addition to his educational initiatives, Tony is a prolific author and a dominant voice in the crypto community. He writes the CoinChartist VIP newsletter, a weekly dispatch that has become a staple among crypto enthusiasts, revered for its insightful analysis and actionable trading advice. This newsletter has consistently ranked as a best-seller on SubStack, boasting thousands of subscribers who rely on Tony’s expertise to guide their trading strategies.

Tony is also celebrated for his literary contributions to the field. He is the author of the highest-rated Crypto Trading Journal on Amazon.com, a testament to his ability to communicate complex trading concepts in an accessible manner. This journal is widely regarded as an essential tool for traders aiming to track their progress and refine their strategies.

Before his ascent in the financial analysis world, Tony honed his skills in journalism. His background in this field has endowed him with a unique ability to present intricate market dynamics in a clear and compelling manner, making his insights highly sought after by a broad audience that ranges from casual readers to professional traders.
His professional affiliations underscore his commitment to excellence and continuous learning. As a partner of Elliott Wave International and TradingView, Tony collaborates with other leading experts to enhance his knowledge and skills. His active membership in the CMT Association further aligns him with the highest standards of industry practices and ethics.

Tony’s nickname, "The Bull," aptly reflects his aggressive and optimistic outlook on the cryptocurrency markets. His forecasts often anticipate significant upturns, earning him a reputation for bullish predictions that have frequently led to lucrative outcomes for those who follow his advice.

In summary, Tony "The Bull" Severino, CMT, is more than just a technical analyst; he is a mentor, educator, and innovator whose influence in the cryptocurrency space continues to grow. His dedication to advancing the understanding of market forces and his commitment to providing high-quality, reliable analysis make him a pivotal figure in the world of cryptocurrency trading.