Litecoin (LTC) has rallied hard the past few months but it might still have ample room for further upside. The weekly chart for LTC/USD shows that the price recovered quickly when it declined this week. We have yet to see it revisit the trend line support but it seems more determined to test higher levels first. If Litecoin (LTC breaks past $120, we could see it rally all the way towards $166. The price will likely top out before it can reach that mark but we might see a retest of the 38.2% fib retracement level from all-time high just below $160. After that, we can expect LTC/USD to decline below $80 and settle around $77 at the 61.8% fib extension level from the temporary bottom.
The long term outlook of Litecoin (LTC) is clear despite the recent buying frenzy. We could see the price rally all the way to $157 but it has yet to form new lows for the year. We could see the price find its true bottom this year or the next but it is not done ending the bear market just yet. Traders might look for opportunities to long the price towards the next bullish target short term but investors who are looking to accumulate for long term might be better off adopting a wait and see approach at this point. Even less experienced traders should wait for the price to top out and then short it instead of chasing the price for a small but very risky move to the upside. RSI is trading in overbought territory on the weekly time frame but we are yet to see it top out.
Litecoin (LTC) is also in serious trouble against Bitcoin (BTC). The weekly chart for LTC/BTC shows that we could see Litecoin (LTC) form new lows against Bitcoin (BTC) in the months ahead. That being said, the weekly chart for LTC/BTC also shows room for a rally to the upside for the time being. While Ethereum (ETH) does not have much room to rally against Bitcoin (BTC) even short term, Litecoin (LTC) does have room to rally against Bitcoin (BTC) short term. This means that we could see Litecoin (LTC) continue to outpace Bitcoin (BTC) during any near term rallies.
We saw the market reach mania levels during late 2017 to early 2018 period. The same has happened once again during the past few weeks which is why investors need to be very cautious. The price could rally short term but that must not be confused with the beginning of a new bull run. I think the price is a long way from beginning a new bullish cycle just yet. We are going to see a continuation of the bear market at least for the remainder of this year. The ongoing cycle has to be longer and not shorter than the previous cycle. It will be interesting to see how Litecoin (LTC) performs during the next few months considering that it has its next halvening in August, 2019.