News by InvestinBlockchain: Yaz Sheikh
It seems that the bulls are back in town for Litecoin after the cryptocurrency surged by a total of 15% over the past 24 hours to reach the current trading price at around $119. The cryptocurrency is now testing strong resistance at the 2019 high, with a break above pushing Litecoin to fresh heights.
Litecoin has seen a great 60% price increase over the past 30 days, with a further magnificent 107% price explosion over the past 3 months.
The recent price explosion comes after Peter Brandt, legendary technical analyst and author of “Diary of a Professional Commodity Trader,” tweeted that Litecoin had completed a significant buy signal against Bitcoin.
The buy signal was the completion of a head and shoulders pattern within the LTC/BTC market, which allowed Litecoin to launch above the 0.0147 BTC level. The head and shoulders pattern is often very difficult to accurately spot, but we can be sure that legendary trader Peter Brandt has it right.
The recent price increase has now also allowed Litecoin to sail into the 2019 high resistance level at the $219 level. If Litecoin can continue to climb above $220, it will be creating fresh 2019 highs.
Litecoin is currently now ranked in 4th position – behind only XRP, ETH, and BTC – as it currently holds a $7.39 billion market cap valuation. Let us continue to take a look at the LTC/USD market and highlight some potential areas of resistance moving forward for Litecoin.
Litecoin Price Analysis
LTC/USD – MEDIUM TERM – DAILY
What Has Been Going On?
We can see that Litecoin had managed to rebound at support provided by the short term .382 FIbonacci Retracement level (drawn in blue) priced at $101. The cryptocurrency then went on to climb further higher and is now currently trading at resistance at the 2019 highs provided by a long term bearish .618 Fibonacci Retracement level (drawn in red) – measured from the May 2018 high to the December 2018 low.
Where Is the Resistance Above $120?
If the bulls can succeed in penetrating above the resistance at $119, we can expect further higher resistance to then be located at the $123 level, which is provided by a short-term 1.414 Fibonacci Extension level (drawn in blue). Above this, further higher resistance is then located at the $125 and $130 levels, provided by the short-term 1.618 Fibonacci Extension level.
Above this, higher resistance can then be located at the $136, $140. and $146.76 levels.
The completion of the head and shoulders pattern – highlighted by Peter Brandt – has now allowed Litecoin to step into resistance at the 2019 price high. If Litecoin can break above the $119 level, we can expect to see the cryptocurrency traveling toward $140 during June 2019.