Litecoin (LTC) is at risk of further downside against Bitcoin (BTC) as the price has just run into a strong resistance at the 38.2% fib retracement level. LTC/BTC is now likely to decline to the bottom of the falling wedge but the big picture tells us that we might see further upside from here soon as the price breaks out of the falling wedge. This tell us that we could see a mini altcoin rally towards the end of the year but this does not mean that we are on the cusp of a bull market. All it means is that Litecoin (LTC) might soon see further upside against Bitcoin (BTC). Confidence in altcoins has been the lowest for the most time since the beginning of the year.
Investors have been more comfortable keeping funds in Bitcoin (BTC) instead of altcoins. This has now turned into a mainstream trend which is why it might be time for it to reverse. The price could rise towards the 61.8% fib retracement level to say the least soon as it breaks out of the falling wedge but that means that should not be confused with the beginning of a bullish market cycle. Litecoin (LTC) failed to rally after its Litecoin (LTC) halving. We expect that the price might see some moves to the upside after the upcoming downtrend. This is likely to convince some investors that we are probably in a bull market and that is what we expect to happen from this point onwards. The market makers are going to keep on trapping more bulls and then systemically wipe them out.
Before we get all excited about an upcoming bullish rally in Litecoin (LTC) against Bitcoin (BTC), we need to consider that LTC/USD still remains on the verge of a strong downtrend. The price broke a key uptrend as it declined below the strong support established since the beginning of the parabolic advance. This support will now be tested as resistance and the price will have a hard time breaking past it. The most likely scenario is that the price will decline to the 61.8% fib extension level and then eventually decline well below it. It is true that the price will see further upside against Bitcoin (BTC) from here but it has yet to see more downside against the US Dollar (USD) and that is more important to focus on.
Any investments in altcoins to capitalize on the mini altcoin season should be considered just that accounting the risks of further downside in Litecoin (LTC) against the US Dollar (USD). A lot of traders and analysts lay too much emphasis on halving but we need to realize that Litecoin (LTC) was hyped up enormously before its halving. It is now likely to see a major correction as investors cash out. It is important to realize that in every market, the whales and the market makers are that profit the most off every opportunity. If the price were to keep on rising from here that would mean that retail traders have most of the coins that mostly have weak hands and give in to emotions. This is why we don’t see a new bullish cycle before most of the coins change hands from weak to strong hands at lower prices and that is when we will see the beginning of a new cycle.
Source: Crypto Daily