Litecoin Uptrend Powerful, Bull Flag Formed Over Downtrend’s Corpse
Altcoins are breaking out, and Litecoin (LTC) as one of the major alts is leading the pack with what looks like a major break of its long downtrend. The MTF has a burning uptrend, while the LTF chart still looks bullish even after several surges.
Starting on the daily LTC/Bitcoin chart, zoomed out, we see clearly see that Litecoin has broken out of its longer downtrend, and is well within a strong MTF uptrend. This means that both HTF and MTF trends are likely pointing up, whereas as few as three days ago, we could not have said that.
A retest and consolidation around the breakout zone around ₿0.0069 would not be unheard of; but considering the strength of the current trend, we may not see that. If we do, it would be healthy.
Moving to the weekly LTC/Dollar chart, we see the same idea illustrated another way: of an exit from a very long downtrend. Litecoin is about to enter the historic bullzone on its RSI, starting at about 55%; and the histogram is accelerating up for a bullish contraction so far in the week, which paints in just two days.
This is nothing if not a bullish picture, and if/when more confirmation comes in, we will be able to further sign off on a broad new uptrend that should last well into 2020.
Finally, way down on a 2-hour dollar pairing, we see that Litecoin’s latest surge has plenty of room to consolidation around $64. Everything looks great here: volume has increased with price rise, and there are no RSI bear divergences showing up on this LTF chart on any of the recent tops.
The histogram here is pointing straight down; but this short term momentum down is completely within the realm of safety for the medium term uptrend. Support under $64 is likely to be bought up with relative ease. A bull flag is clearly forming on top of the latest surge.
Quite simply, altcoins are likely entering a bull market and may continue outperforming Bitcoin. Bitcoin is rising in price even as its market dominance falls; and this is the cardinal sign of an altcoin bull market. Litecoin should be one to watch.