Litecoin (LTC) Defends 200 Day MA, Signals Possibility Of A Golden Cross

Litecoin (LTC) Defends 200 Day MA, Signals Possibility Of A Golden Cross

Litecoin (LTC) has been consolidating above the 200 day moving average for the past few days but the Stochastic RSI signals a big move to the upside that could result in a golden cross coming to fruition. If that happens, we could see LTC/USD rise to $100 in a matter of days. If we look at general market conditions, the probability of this golden cross coming to fruition remains low. However, Litecoin (LTC) and Ripple (XRP) are perhaps the only cryptocurrencies in the market that have an extremely bullish near term outlook. If cryptocurrencies did always move under the pull of Bitcoin (BTC), we may not be discussing this, but the fact that Ethereum (ETH) took the lead during the previous rally and Bitcoin (BTC) followed leads us to believe that something similar might happen again.

Ripple (XRP) has been seen to make independent moves in the past. We have seen XRP/USD rise even when the rest of the market has been bleeding. However, Litecoin (LTC) has seldom made any such moves. Most of the time, LTC/USD closely follows the price action of Bitcoin (BTC) with magnified moves. If Bitcoin (BTC) goes up, Litecoin (LTC) goes up harder, if Bitcoin (BTC) goes down, Litecoin (LTC) goes down harder. Now, perhaps for the first time in a long time LTC/USD has the opportunity to make an independent move that could see it rise more than 100% from current levels. The reason this rally has a higher probability of occurring is because Litecoin (LTC) has its next halvening event in August.

Every time after a cryptocurrency undergoes halvening, we see a rise in its price. However, before that halvening event, we see a lot of money flow into that cryptocurrency because investors want to profit off that rally. We have seen that happen in the case of Bitcoin (BTC) and Litecoin (LTC) both during previous halvening events. There is no reason to assume that this halvening would be different. Considering that most cryptocurrency analysts and traders already believe that the market has bottomed out, Litecoin (LTC) investors are accumulating aggressively at current levels.

The daily chart for LTC/BTC shows what happened when we saw Litecoin (LTC) form a golden cross against Bitcoin (BTC). The price immediately shot up and made a 50% gain in a matter of days. If the golden cross on LTC/USD comes to fruition, we expect the impact to be even greater. The conditions for a rally from current levels are extremely favorable. We could see the next move to the upside as early as this week. For long term investors, this is a good point to start accumulating but for traders, this may not be the end of the bear market. We do believe that the price has been due for a correction to the upside but the final corrective Elliot wave to the downside is yet to be completed which should see Litecoin (LTC) find its true bottom in Q2 of 2019.

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