Disclaimer: The findings of the following analysis are the sole views of the author and should not be considered investment advice.
Bitcoin’s growth over the past month has accelerated bullish recovery efforts in the crypto market. The knock-on effects of this growth in the altcoin market were quite evident, especially with double-digit monthly gains.
As a result, Litecoin [LTC] Buyers found fresh pressure that encouraged its recovery beyond the 20 EMA (red) and 50 EMA (blue).
A possible close above the immediate ceiling could increase the chances of an extended rally in the coming times. At press time, LTC was trading at $61.175.
LTC Daily Chart
The altcoin’s efforts to reverse the downward trend have finally paid off after reviving more than a third of its value in the past three weeks. With a bullish channel (white) in place, the bulls consolidated their position beyond the constraints of the 20/50 EMA.
Since breaking the five-month trend line resistance into support, the bulls are trying hard to break the $61-$62 range resistance. With the 20 EMA (red) still looking north, buybacks could position the alt to continue its patterned swing. In this case, potential targets would be in the $68 area near the upper trend line of the upper channel.
Bulls need to find a close above their immediate resistance range to increase the chances of a sustained rally. Any break below the pattern would imply reversal trends and could confirm short circuit signals.
The Relative Strength Index (RSI) struggled to hold a position beyond the 60 mark, while depicting a slight advantage for the bulls. A prolonged swing above the equilibrium zone would play in favor of the bulls.
However, the upward divergence in OBV could help the buyers to maintain the current pattern and continue the bullish phase. Still, it needed to break its resistance to confirm a strong buying advantage.
Also, the MACD lines saw a bullish edge while hovering above the zero point.
Given the bullish crossover of the 20/50 EMA alongside the bullish candlestick on the daily chart, buyers would aim to continue the pattern move. The objectives will remain the same as discussed. A reversal from the $68 area or the lower trend line of the pattern would imply a sell signal.
Finally, LTC shares a 95% 30-day correlation with king coin. Therefore, a careful look at Bitcoin movement would be imperative for a profitable move.