Litecoin gained over 60% in an impressive rally that saw it almost hit $100. Why the big move?
April 04, 2019. | AtoZ Markets - The cryptocurrency market surged on Tuesday and continued on Wednesday. Crypto prices are breaking away from their bearish zones. The current bullish recovery started in December 2018. The market has gained over $44 billion in capitalization - 33% gain since January. With such a move, the bulls will only have more confidence in a complete market recovery. Litecoin added to its 100% profit in 2019 prior to the current breakout.
Litecoin impressive 2019 performance
Litecoin is among the biggest gainers this year. It gained 100% to hit $60 in February. It continued the rally close to $65 in March and went sideways between $58 and $62. It broke away to the upside and hit almost $100 on April 2. Overall, Litecoin gained an impressive 346% since it bottomed in December 2018. Meanwhile, Litecoin price retraced to $77 on Wednesday. It currently exchanges for $88 after a little bounce.
Was the upsurge driven by fundamentals or FOMO?
Many have tried to understand why the sudden surge happened. Though a bullish breakout was expected, but few people would have anticipated such a big response from the crypto market this week. This rally is seen across the board and looks fundamentally driven though there is no one, in particular, to point to
Litecoin technical analysis
In February, there are fears that Litecoin might complete another corrective zigzag pattern at $50 and its neighbourhood and then returned downside for a new low. If the zigzag was violated, an alternative bullish impulse wave to $90, leading to complete market recovery was expected. Price went for the latter option as the chart below used on 18 March update shows.
A bullish impulse wave from $22 was confirmed and a break above $70-$80 for wave (iii) was expected. The current bullish breakout to $100 has confirmed wave (iii). The price might go sideways between $95 and $78 to complete the 4th wave as the chart below shows.
The bullish impulse wave is not yet complete. After a sideway dip to complete wave (iv), the price should rally further to $110 or more. At the end of the impulse wave, a bigger 3-wave dip should follow to retest $66-70 support (once resistance) zone. If the price follows this up with another bullish push above the top of the current impulse wave, we could say a complete recovery has started from Elliott wave perspective.
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