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Litecoin (LTC) Enters Consolidation Phase Before Its Next Big Move
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Litecoin (LTC) Enters Consolidation Phase Before Its Next Big Move

Litecoin (LTC) is trading around $33 and is now consolidating just before its next big move. The real question is, “What is this next big move?” Back when LTC/USD was trading around $300, Charlie Lee the founder of Litecoin (LTC) tweeted saying that he did not want to spoil the party but the price is expected to fall. He further said that those that cannot see Litecoin (LTC) falling to $20 should not buy. Charlie Lee said this in December 2017 and now we are a few days away from December 2018. The price of Litecoin (LTC) is likely to bottom in December this year if it has not already. Back in 2015 even after Litecoin (LTC)’s capitulation with the rest of the market, it ended up making a new yearly low after that.

Litecoin (LTC)’s fall to a new yearly low after the general market capitulation was very quick and the price was soon back where it fell from. However, the fact remains that it did make a new yearly low after the market capitulation which is why we can expect the same to happen this year. Now, a lot of people might say that the circumstances are different and Litecoin (LTC) is bigger and better today. However, the reality is that none of those things matters because there are always reasons for market cycles to repeat. For Litecoin (LTC) we may see that reason but we do not know yet what it is going to be. Back in 2014-15, we saw the price decline rapidly because the infamous Mt. Gox hack occurred. This year, nothing of the sort happened but the price still declined.

So, most of the time the price may repeat history under the shadow of some events or developments, but even when there are no events or developments, the same thing happens one way or the other. If we look at the price action of Litecoin (LTC), we can see that it performed a lot better than most coins during the last bull run. As mentioned in our previous analyses, this had to do with the Coinbase listing. A lot of people want to own full coins instead of a portion of coin. So, when Litecoin (LTC) was added to Coinbase, it was the cheapest coin in there and most investors bought a ton of it considering there were no other coins to invest in.

As Litecoin (LTC) has been more bullish than most coins, it is also expected to now be more bearish than most coins to effectively complete its correction. Even though Litecoin (LTC) seems to have found a temporary bottom for now, it would not be surprising to see it falling further in early 2019 to effectively reach a bottom around $20. That being said, for long-term believers in Litecoin (LTC) this would be the ideal time to start accumulating. LTC/BTC seems to be holding on to its two years long trend line that it has not broken so far. The 10 Week EMA is now the closest it has been to the 21 Week EMA since June. The moment the 10 EMA crosses above the 21 EMA, we are likely to see a bullish breakout that is ultimately going to take Litecoin (LTC) to a new all time high.

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Fakhan

I work as the key Trading Analyst for Crypto Daily and provide the team with regular analyses and updates regarding the technical performance of all cryptocurrencies on the market. I am responsible for the production of articles and posts for Crypto Daily’s own technical analysis section and spend my time monitoring and commenting on the varied moves the markets make on a daily basis.

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