{"id":544407,"date":"2023-01-27T17:09:49","date_gmt":"2023-01-27T14:09:49","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/litecoin-head-fake-rally-ltc-price-technicals-hint-at-65-crash\/"},"modified":"2023-01-27T17:09:49","modified_gmt":"2023-01-27T14:09:49","slug":"litecoin-head-fake-rally-ltc-price-technicals-hint-at-65-crash","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/litecoin-head-fake-rally-ltc-price-technicals-hint-at-65-crash\/","title":{"rendered":"# Litecoin &#8216;head fake&#8217; rally? LTC price technicals hint at 65% crash"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a23e5ea2c2ba\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a23e5ea2c2ba\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/litecoin-head-fake-rally-ltc-price-technicals-hint-at-65-crash\/#%E2%80%9D_Litecoin_%E2%80%98head_fake_rally_LTC_price_technicals_hint_at_65_crash_%E2%80%9C\" >&#8221; Litecoin &#8216;head fake&#8217; rally? LTC price technicals hint at 65% crash &#8220;<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/litecoin-head-fake-rally-ltc-price-technicals-hint-at-65-crash\/#LTC_price_paints_giant_bear_flag\" >LTC price paints giant bear flag\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/litecoin-head-fake-rally-ltc-price-technicals-hint-at-65-crash\/#Litecoin_price_%E2%80%9Chead_fake%E2%80%9D\" >Litecoin price &#8220;head fake&#8221;?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/litecoin-head-fake-rally-ltc-price-technicals-hint-at-65-crash\/#Bullish_scenario_for_Litecoin\" >Bullish scenario for Litecoin<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Litecoin_%E2%80%98head_fake_rally_LTC_price_technicals_hint_at_65_crash_%E2%80%9C\"><\/span>&#8221; Litecoin &#8216;head fake&#8217; rally? LTC price technicals hint at 65% crash &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div class=\"post-content\" data-v-5a4050f8>Litecoin (LTC) has rebounded by 130% to almost $100 after bottoming out near $40.50 in June 2022. The primary reasons include broadly improving risk-on sentiment and euphoria around the Litecoin halving in August 2023. <\/p>\n<p>However, technicals suggest that LTC may wipe out most of these gains in the coming months.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"LTC_price_paints_giant_bear_flag\"><\/span>LTC price paints giant bear flag\u00a0<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Litecoin stands to pare its gains mainly due to a giant bear flag on the weekly char.\u00a0<\/p>\n<p>A bear flag is a bearish continuation pattern that occurs when the price consolidates inside an ascending, parallel channel after undergoing a strong downtrend. It resolves after the price breaks below its lower trendline with a rise in trading volumes<\/p>\n<p>Litecoin has been painting a similar pattern since early June 2022. Previously, the LTC\/USD pair had undergone a 70% price correction from $130 to $40.50. Thus,  from the technical perspective, it would resume its downtrend course if its price breaks below the lower trendline.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2023-01\/10b40ce5-c197-4714-857b-461175118937.png\"><figcaption style=\"text-align: center;\"><em>LTCUSD weekly price chart featuring bear flag breakdown setup. Source: TradingView<\/em><\/figcaption><\/figure>\n<p>As a rule, a bear flag breakdown move prompts the price to fall by as much as the previous downtrend&#8217;s length. <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">App<\/a>lying the same setup to Litecoin brings its bear flag downside target to nearly $30.50, or\u00a065% lower than current LTC price.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Litecoin_price_%E2%80%9Chead_fake%E2%80%9D\"><\/span>Litecoin price &#8220;head fake&#8221;?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>As said earlier, Litecoin&#8217;s price recovery has primarily occurred in line with similar moves across the risk-on market due to cooling inflation.<\/p>\n<p>For instance, the Nasdaq-100 stock market index has risen approx. 15.50% between October 2022 and January 2023. Similarly, Bitcoin (BTC) has rallied by more than 50% since its November 2022&#8217;s low of around $15,500.<\/p>\n<p>The weekly correlation coefficient between Litecoin and Nasdaq-100 has been mostly positive at 0.35 on Jan. 27. Similarly, correlation between Litecoin and Bitcoin is now around 0.21.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2023-01\/ffb44860-e6e0-4f34-b4ed-e720860da9ae.jpg\"><figcaption style=\"text-align: center;\"><em>Litecoin&#8217;s weekly correlation coefficient with Nasdaq-100 and Bitcoin. Source: TradingView<\/em><\/figcaption><\/figure>\n<p>But many analysts, including Mark Haefele, the chief investment officer at UBS Global Wealth Management, have <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/markets.businessinsider.com\/news\/stocks\/stock-market-prediction-global-rally-downside-inflation-economic-data-2023-1\">noted<\/a> that the ongoing risk-on rally could be a &#8220;head fake.&#8221; In simple words, the ongoing Litecoin rally, under the influence of its risk-on counterparts, could be short-lived.\u00a0<\/p>\n<p>Independent market analyst Capo of Crypto also <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/CryptoCapo_\/status\/1616725974292340736\">agrees<\/a>, noting:<\/p>\n<blockquote><p>&#8220;The way the upward movement is happening, the way [higher-timeframe] resistances are being tested&#8230; it clearly looks manipulated, no real demand. Once again, the biggest bull trap I&#8217;ve ever seen.&#8221;<\/p><\/blockquote>\n<h2><span class=\"ez-toc-section\" id=\"Bullish_scenario_for_Litecoin\"><\/span>Bullish scenario for Litecoin<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>However, not everyone is bearish on risk assets such as Litcoin. Popular market analyst Rekt Capital <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/rektcapital\/status\/1618925729089224705\">sees<\/a> Litecoin rallying toward $160 in the coming weeks, citing a monthly chart setup as shown below.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2023-01\/2387b700-1c8e-4bde-8ec0-b5c603f776ce.png\"><figcaption style=\"text-align: center;\"><em>LTC\/USD monthly price chart. Source: TradingView<\/em><\/figcaption><\/figure>\n<p>Notably, the chart shows LTC&#8217;s price undergoing a strong rebound move after testing a multi-year ascending trendline resistance inside the $40-$50 area, which could qualify it for a further uptrend toward the $120-$160 range.<\/p>\n<p>These upside targets have previously acted as supports and resistances. Breaking this key resistance could therefore invalidate the bear flag setup, which happens 54% of all time according to\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/thepatternsite.com\/flags.html\">research<\/a>\u00a0by veteran investor Tom Bulkowski.<\/p>\n<p class=\"post-content__disclaimer\">This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.\n<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/litecoin-head-fake-rally-ltc-price-technicals-hint-at-65-crash\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Litecoin &#8216;head fake&#8217; rally? LTC price technicals hint at 65% crash &#8220; Litecoin (LTC) has rebounded by 130% to almost $100 after bottoming out near $40.50 in June 2022. The primary reasons include broadly improving risk-on sentiment and euphoria around the Litecoin halving in August 2023. However, technicals suggest that LTC may wipe out&#8230;<\/p>\n","protected":false},"author":1,"featured_media":544408,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/s3.cointelegraph.com\/uploads\/2023-01\/adbfdc75-e1c4-4bf4-b6f3-244106ce137a.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74867,75162,76111,74939,78261,70551,73785,72332],"class_list":["post-544407","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-altcoin","tag-litecoin","tag-litecoin-price","tag-market-analysis","tag-tech-analysis","tag-inflation","tag-markets","tag-nasdaq"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/544407","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=544407"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/544407\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/544408"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=544407"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=544407"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=544407"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}