The volatile trend in the cryptocurrency markets continues after the FOMC, with no clear direction yet. The three-year interest rate expectation of the members was extremely high, and Powell did not speak very moderately. Altcoins, which were gaining profits due to the postponement of the MtGox sale a few hours ago, have now turned downwards again. So, what can LTC investors expect?
LTC Price Analysis
From a technical perspective, the price has formed a double bottom pattern and broke through the descending resistance line six days ago. The breakout is confirmed on the daily and six-hour charts, with the only concern being the sudden change in market sentiment, but the process for LTC specifically can remain positive.
On the daily chart, the descending resistance line that has been in place for two and a half months has been surpassed. Such breakouts usually bring expectations of additional gains as they indicate the end of the previous downtrend. If LTC bulls can remain strong, they can keep the trend upward.
The movement before the breakout is also in the upward direction. Between August 17 and September 11, LTC formed a double bottom formation, combined with a bullish divergence in RSI.
Litecoin (LTC) Price Forecast
The two bottoms in line with the divergence in RSI suggest that the price should recover with a significant increase in momentum. If the expected upward movement occurs, we can see the price climb to the $75-85 range, with a 25% increase.
However, if the downward trend of BTC does not quickly reverse, LTC sellers may come into play and push the price back to the $55 range. A real increase in volatility is expected in the cryptocurrency markets these days, but BTC’s current weakness and the decline in volumes raise the possibility of a downward movement.
The critical support area that should provide support for the bullish scenario is at $62.5. A close below this critical support area would damage the reliability of the breakout. After such fake movements, prices tend to decline rapidly, so a decline to the aforementioned $55 range would not be surprising.
BTC is currently at $26,743. The cumulative trading volume of cryptocurrencies is still below $30 billion. The bear market we are in is more boring than previous ones, and we are still not able to get closer to the light at the end of the tunnel.
