Both Bitcoin and Litecoin have cashed in on the euphoria incited by the launch of Coinbase new licensed Bitcoin exchange. It was indeed an opportunity for traders to pump the market based on optimistic fundamentals. While Bitcoin rose naturally, Litecoin remained to be its sidekick, tailing its trend.
Here is a quick recap of Litecoin price movements in the last few days. The LTC/USD was trending sideways in a congestion pattern. There was absolutely nothing in terms of trading volume, only until Coinbase released some details about its upcoming Bitcoin exchange. It was Bitcoin traders which reacted heavily on the optimistic event, and thus pumped up the market. Litecoin trades meanwhile surged as well and the price rose from 1.41 to 2.86 within merely 8 hours.
As you can see on the chart above, the tall green candles began to appear almost instantly due to a then-ongoing buying spree. However, sellers also attempted to take control of the euphoria by selling Litecoin at its peak. There was some pressure from the bulls’ end as well, but eventually it loosened in the latter part of the day. The price currently is floating near the 1.80-1.95 area.
Will There Be a Reversal towards 3.00?
As explained above, the Bitcoin and Litecoin rally was simply a reaction to some very good news. But at press time, we see no such euphoric volatility in the market. The price is still trading in a bearish bias, which is hopeful to reduce once the former crosses above the 2.65-resistance area. In a parallel world, Bitcoin itself needs to cross above 275 to keep its sidekick bullish for the near-term at least.
The technical indicators are, however, not supporting the aforementioned scenario. As you can see on the LTC 4H chart, the blue MACD indicator is taking a swift walk towards north and is currently under the saffron signal line. The RSI, meanwhile, is reported to be around 55 – a neutral zone where the arrival of buyers and sellers is equally possible.
While it is clear that the price might go a little sideways or downwards in the next few hours, let’s not rule out the possibility of a reversal, especially around the prevailing support near 1.75. However, its longevity seems doubtful for now.
$3 is a great psychological resistance level, above which Litecoin might establish a long-term bullish bias. Let’s wait for the upcoming block halving which is likely to influence traders to put more buy orders.