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Over the past couple of days (December 8th and 9th), Litecoin has made a major price breakout through its all-time high of $93.62 established on September 17, 2017.
Litecoin first approached and surpassed its all- high on November 28th, where it met some price resistance causing it to hover about the high for about 10-days.
Litecoin then exploded to the upside on December 8th making a strong upward surge on very strong volume, and setting a new all-time high of $158.50 the next day on December 9th.
This accounts for a 74% upward move of $69.48 to the upside for Litecoin over a 2-day period.
Chart #1: Daily Price Chart
In technical analysis, the price chart patterns that typically emanate after a price move as the one displayed in the above daily chart (Chart #1) are Flag Pole patterns (Labeled in Chart #1).
Look for a period of price consolidation which will form a triangle or a pennant pattern that give clues as to whether price will continue increasing to new highs, or give back the gains that have been made.
More often than not, these types of moves are followed by new highs. Especially in light of what is currently happening in the Cryptocurrency sphere.
With Bitcoin making new all-time highs on a daily basis on the back of unprecedented market volatility, the “B” word (B for Bubble) is now being bandied about by market media pundits.
When the so-called “Bubble” does burst, (or when Bitcoin simply experiences an extended price retracement) traders and investors will be exiting Bitcoin and looking elsewhere for profit-making opportunities while Bitcoin stabilizes.
This will in all likely create some movement in all the other popular cryptocurrencies, including Litecoin.
Chart #2: 30-minute Price Chart
The 30-minute chart is already starting to show some indication of continued upward momentum.
First, the current price retracement, although it did come close, it did not exceed the 50% Fibonacci price retracement level, as noted in the chart above by the shaded areas.
Second, price did briefly dip below the 9-day moving average in the 30-minute chart on two separate occasions, but price immediately recovers back above the moving average.
The next few daily bars will tell the tail.
The daily chart is showing very strong volume.
The savvy trader will watch to see if the next series of price swings on the 30-minute chart exceed the high or low of the last two.
If price exceeds the high of the last upswing, then a new all-time high is very likely.
We will be watching closely.
We will be updating our subscribers as soon as we know more. For the latest updates on LTC, sign up below!
Image courtesy of coinmarketcap.com
Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.
