Technical Analysis and Market Entry: Litecoin (LTC/USD) – Buyers are Eyeing Another Bull Move
- Litecoin (LTC) is on a solid move to the north since rocketing off the psychological $100 mark, following the retest.
- LTC/USD bulls have extended to the upside after breaking out from a bullish flag structure seen via the daily chart view.
- As per the last Litecoin technical analysis article, strong buyers kicked into gear at noted areas of interest.
LTC/USD: Recent Price Behaviour
Litecoin is breaking out into further orbit, outperforming many of its peers across the cryptocurrency market. The price is running at its third consecutive session in the green, after a brief period of consolidation. LTC/USD within the noted period of consecutive gains has jumped over 25% thanks to a fresh wave of buying pressure. The momentum picked up after seeing a breakout to the upside from a bullish flag pattern formation.
The price has been enjoying a strong and steady move to the upside since February. It has been guided and comforted on important occasions, by a running ascending trend line. Over the last nineteen weeks, Litecoin has closed in the green for fifteen of those. The current trend higher is the best that has been seen since the 2017 bull run, proving the reliability of this recovery. LTC/USD has now pushed to the highest levels since May 2018.
Bull Flag Breakout
Following a strong push higher at the back end of May, LTC started to consolidate which was carried through to early June. The price behavior, as earlier touched upon, constructed a bullish flag pattern. On 7th June, market bulls forced a breakout to the upside, smashing through the upper acting trend line of the formation. The two following sessions saw a retest above the flag, completing the technical textbook behavior.
Once LTC/USD had completed a price retest of the structure, a further wave of buying pressure came into play. It has resulted in three straight sessions of consecutive gains at the time of writing. The bulls managed to clear an strong known area of supply, which runs from $115 up to $130 price range. Litecoin has not traded above this zone since May 2018, at the time when the market was in full control by the bears.
Given the recent aggressive surge higher witnessed, one would expect a small potential pullback ahead of further moves north. Taking further longs at the current price levels are attractive but firmer confirmation would see a retest of the below zone. The period acting supply area as touched upon above, $130-$115, will now be sought as support.
A pullback on the daily and confirmation of the necessary support around $130 would be of interest for adding to buys. In terms of upside targets, the $160-$170 range and then further north $180 are the next targets. Under such a scenario, stops would be placed $113, just below the mentioned zone.
Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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