Disclaimer: The findings of the following analysis are the only opinions of the writer and should not be considered investment advice

Litecoin’s movement on the price charts has a correlation of +0.96 (30 days) with Bitcoin’s movement. This meant that Bitcoin’s bullish phases would also see price increases for Litecoin. But as Bitcoin broke past $45k and sought a bottom to start a bullish run, Litecoin struggled to reach a higher high.

LTC-1D

Source: LTC/USDT on TradingView

Litecoin has been in a downtrend since late November when the price fell below $216 and retested it as resistance. However, in the past two months, LTC has found some support at $95-$100 and consolidated.

Additionally, it has managed to move past the $115.9 (white dotted) level and, at the time of writing, straddled the $120 level as a support. Does this mean that a bullish trend has started? Not quite yet.

Although there has been a break in the market structure, the long-term trend was still bearish. A run into the $145-$150 area could take place in the coming days. However, the price should flip $150 from resistance to support.

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Source: LTC/USDT on TradingView

What do the indicators say about the trend of Litecoin? The daily chart’s RSI had moved above the neutral 50 line, demonstrating some bullish momentum over the past two weeks. If the RSI does not dip below 40 and instead rises above 60 again, that would indicate strong bullish momentum has returned.

While Chaikin cash flow was well above +0.05, the OBV showed that selling pressure was generally greater than buying pressure. Therefore, while there was some buying in the month of March (and the OBV reflects it too), there probably wasn’t enough bought to shift the trend towards bullish.

Conclusion

The $115-$120 support area is likely to act as a support and LTC could move higher again. Still, the general trend of bearishness has not changed much. The lack of significant purchasing volume in recent months was evident. Until $150 flips to support, LTC probably wouldn’t take an optimistic view of the longer term.



This post LTC Changes Structure To Bullish But Why Macro Trend Is Still Bearish

was published first on https://ambcrypto.com/ltc-flips-structure-to-bullish-but-why-the-macro-trend-is-still-bearish/

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