The halving of a cryptocurrency is believed to come with an increase in demand as the incentive offered per block of mined transactions was slashed from 25 LTC to 12.5 LTC. This, however, was not the case as eager investors were highly disappointed as the Litecoin price plummeted further to a $70.00 low at press time.
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With a continuous increase in Bitcoin (BTC) dominance, Litecoin (LTC) and other altcoins are suffering massive loss as their price forms new lows.
In an interview with Al Jazeera, Eric Turner from the Messari Blockchain Analytics firm stated that a couple of investors are exiting their positions on the LTC cryptocurrency, following the halving of the number five cryptocurrency by market capitalization.
Let’s take a closer look at the technical drivers of the LTCUSD price.
LTCUSD Monthly
An aerial view from the monthly chart reveals a hanging-man candlestick pattern on July ’19, indicating the correction of the earlier gains by buyers of Litecoin.
So far, the LTCUSD has dipped by approximately 52.01% from the spinning top high of June ’19 at $146.00 to a current low of $70.00.
LTCUSD Weekly
Let’s take it one step in to view the weekly time frame for insights into a possible reversal or continuation patterns.
The weekly time frame also maintains a bearish outlook following a formation of evening-star, hanging-man, and bearish accumulation candlestick patterns.
Last week’s breakdown of hidden bullish accumulation (August 12 ’19) signals a recent bearish pattern. However, as the Relative Strength Index makes lower troughs compared to the April 29 ’19 trough, we anticipate a hidden bullish divergence setup.
A price close above the significant resistance ($107.04) should confirm early signs of bullish price recovery. On the other hand, a breach of the $64.86 support cancels the bullish divergence set up and points to further price decline.
LTCUSD Daily
Based on our expected hidden bullish divergence on the weekly time frame, the daily chart flags a regular bullish divergence pattern, confirmed by a breakout of bearish accumulation resistance levels. A series of bearish signals on July 22, August 03 and 08 precedes the current bullish move after exiting the oversold area on July 17 ’19.
LTCUSD 4-hour
An interesting observation on the 4-hour time frame again is a regular bullish divergence pattern on August 17 and 21. It’s been more of a downward flowing rollercoaster here on the 4-hour time frame as critical resistance levels hold firm against a fully restored bullish trend.
At publication time, the bulls break above bearish accumulation resistance levels at $72.97 and $73.52, signs the bulls still pose a challenge.
LTCUSD 2-hour
Finally, at the level of the intraday 2-hour time frame, swing traders get to enjoy the unfolding bullish and bearish swings.
Starting with a regular bullish divergence pattern on August 18 01:00, the Litecoin price increased by roughly 9.11%, which was later followed by an 8.95% price decline form a breakdown of bullish accumulation.
The bulls struggle to restore their gains following an earlier 6.75% price rally; however, the bears stay resilient by breaking below hidden bullish accumulation support $74.52 on August 23 15:00.
Conclusion
Litecoin (LTC) generally maintains a bearish outlook in the medium and long term. However, we lookout for a confirmation of the anticipated hidden bullish divergence pattern on the weekly time frame through a rejection of critical resistance levels ($89.93 & $79.06).
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