We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Mixed
GBP/USD
Bullish
USD/JPY
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Bullish
Oil - US Crude
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Bitcoin
Mixed
More View more
Real Time News
  • $GBPUSD trying to base some support of fibo prior resistance 3117 https://t.co/iiuOEdfZUN
  • Commodities Update: As of 19:00, these are your best and worst performers based on the London trading schedule: Silver: 0.17% Oil - US Crude: 0.02% Gold: -0.05% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/81A2igDsqg
  • $GBPUSD is again testing resistance on the daily chart at a trendline joining recent lower highs. If it can break out to the upside from a triangle pattern. Get your market update from @MartinSEssex here: https://t.co/ojGkdTFnD5 https://t.co/cKwcQFOv4L
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.48%, while traders in US 500 are at opposite extremes with 75.61%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/5Ouy6Syf8T
  • Boeing CEO says the company plans to start with a "clean sheet of paper" on a new midsize airplane... Yikes $BA
  • Indices Update: As of 19:00, these are your best and worst performers based on the London trading schedule: US 500: 0.22% Wall Street: 0.16% France 40: 0.02% Germany 30: -0.02% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/d2OTCpHJCS
  • En español: Dow Jones - ¿Qué es y por qué es importante para los traders? #trading #DJIA #DJI #WallStreet https://t.co/Bp9tig8NWi https://t.co/ttpiN9Js8M
  • The $NZD is poised to mark the fourth consecutive weekly decline against the US Dollar with NZD/USD down more-than 2.4% off the late-December highs. Get your market update from @MBForex here:https://t.co/MUrqMYnGGV https://t.co/fmExUwAaSK
  • #Crypto update: $BTC +0.3% $BCH +2.1% $ETH +0.5% $LTC +2.4% $XRP +0.7%
  • is quarantine good or bad for stocks? (checks charts) ok, then $SPY bounce after filling the gap https://t.co/NbBi5AYGY2 https://t.co/KfKf0rTKxY
Litecoin (LTC) Price Analysis: Bullish Breakout or Fake Break?

Litecoin (LTC) Price Analysis: Bullish Breakout or Fake Break?

2020-01-16 12:00:00
Nick Cawley, Analyst
Share:

Litecoin (LTC) Price Forecast, Analysis and Chart:

  • Litecoin turns 70% higher in a month.
  • Daily chart still suggests that the longer-term trend is valid, for now.

If you are interested in trading the cryptocurrency market, we have produced a Day Trading Guide to Bitcoin and Other Cryptocurrenciesto help you better understand this highly volatile asset class.

Litecoin (LTC) Surges But is This Rally for Real?

Litecoin (LTC) has put in an impressive 70% rally since the its December 18 low at $35.9 and Tuesday’s $61.0 high, marking it out as one of the top performing cryptocurrencies over the last month. While the move suggests that buyers are back in control and higher prices likely, the same pattern of rally and then sell-off has been seen twice on the daily chart in recent months, positing the question is this latest rally sustainable?

The daily chart shows a mixture of positive and negative signs, but a clearer picture and a confirmation of longer-term direction is starting to appear. Since its June 2019 high, Litecoin has made an unbroken series of lower highs, while a series of lower lows remain for now. Litecoin has made a clear break above the 20- and 50-day moving averages, while the shorter-dated ma has also turned higher through the medium-dated ma. This move was also seen in early November before the rally fizzled out and the 20-dma turned lower. The recent move has also pushed LTC into overbought territory – using the CCI indicator – for the first time in two months.

Buy the Higher Low and Sell the Lower High

For the rally to gain further credibility, Litecoin needs to make a convincing break above $65.5, the last lower high, with further credence added if it can trade back above the 200-dma, currently at $66.6. This would then suggest that a re-test of the mid-December low is unlikely. A break below this low however, would continue the bearish sequence of lower lows.

Litecoin BULLISH
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily 0% 6% 0%
Weekly 1% 21% 2%
Learn how to use Sentiment in your trading strategy
Get My Guide

Litecoin (LTC) Daily Price Chart (February 2019 - January 16, 2020)

Litecoin chart showing massive price rally

Traders may be interested in two of our trading guides – Traits of Successful Traders and Top Trading Lessons – while technical analysts are likely to be interested in our latest Elliott Wave Guide.

What is your view on Litecoin (LTC) – bullish or bearish?? You can let us know via the form at the end of this piece or you can contact the author at nicholas.cawley@ig.com or via Twitter @nickcawley1.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.