Litecoin hit below $70 following a massive breakout on Wednesday. The following looks at the technical side based on the Elliott wave theory.
August 30, 2019 | AtoZ Markets – The cryptocurrency market was valued $380 billion in mid-June 2019. Right now, the value has plummeted to $248 as revealed on Coinmarketcap. Litecoin was one of the top 2 gainers together with Bitcoin Cash during the 2019 bullish surge. Both are Hard Forks of Bitcoin. Litecoin movement often follows Bitcoin’s closely. It remains the 5th largest with $4.07 Billion in capitalization.
August started with a dip below the $100 mark. Before the 1st week ended, there was a spike to $106.5. Meanwhile, the bearish run returned and it has been a fall after the other. At the start of this week, LTC was resisted above the $70 mark. There was no bullish trigger to cause a big bounce off this level. Instead, the price went sideways for nearly two weeks until it finally broke below $70. Currently, Litecoin is priced at $64 after a minor bounce from $62.
Litecoin analysis: important price levels
To the upside, the first level of interest is the sideway range region between $70 and $79. If the price should break above this zone into levels above $80, the bull might stage a sharp recovery. The next resistance level is at $106.5. To the downside, on the other hand, the break below the critical $70 support level has exposed LTC to further decline to the $50 handle which is also the 78.6% retracement of the December 2018-June 2019 price surge.
Litecoin price prediction: Elliott wave analysis
From the Elliott wave perspective, the current dip which started at $147 is completing a double zigzag pattern. Bitcoin correction is significantly shallower than what is seen on the Altcoins. The chart below was used in the last update.
There was a break downside as expected. The break below $70 meant that the 61.8% retracement level has been taken out. The next bearish target is the $50 handle as the new chart below shows.
A minor retracement to test $70 might happen but the current bearish correction is probably not yet over. Further decline to $50 is expected.