[ad_1] <br><div data-v-5a4050f8=""><p>Litecoin (<a target="_blank" href="https://cointelegraph.com/ltc-price-index" rel="noopener">LTC</a>) has rebounded by 130% <a target="_blank" href="https://cointelegraph.com/news/litecoin-eyes-100-after-rare-ltc-price-breakout" data-amp="https://cointelegraph-com.cdn.ampproject.org/c/s/cointelegraph.com/news/litecoin-eyes-100-after-rare-ltc-price-breakout/amp" rel="noopener">to almost $100</a><a target="_blank" href="https://cointelegraph.com/news/litecoin-eyes-100-after-rare-ltc-price-breakout" data-amp="https://cointelegraph-com.cdn.ampproject.org/c/s/cointelegraph.com/news/litecoin-eyes-100-after-rare-ltc-price-breakout/amp" rel="noopener"> after bottoming out near $40.50 in June 2022. The primary reasons include broadly improving risk-on sentiment and euphoria around <a target="_blank" href="https://cointelegraph.com/news/litecoin-pre-halving-fractal-hints-at-200-ltc-price-rally-by-july-2023" data-amp="https://cointelegraph-com.cdn.ampproject.org/c/s/cointelegraph.com/news/litecoin-pre-halving-fractal-hints-at-200-ltc-price-rally-by-july-2023/amp" rel="noopener">Litecoin’s upcoming halving</a> in August 2023. </p><p>Nonetheless, technicals recommend that LTC might wipe out most of those features within the coming months.</p><h2>LTC value paints big bear flag </h2><p>Litecoin stands to pare its features primarily on account of a large bear flag on the weekly chart.</p><p>A “bear flag” is a bearish continuation sample that happens when the worth consolidates inside an ascending, parallel channel after present process a powerful downtrend. It resolves after the worth breaks under its decrease trendline with an increase in buying and selling volumes.</p><p>Litecoin has been portray an analogous sample since early June 2022. Beforehand, the LTC/USD pair had undergone a 70% value correction from $130 to $40.50. Thus, from the technical perspective, it could resume its downtrend course if its value breaks under the decrease trendline.</p><figure><img src="https://s3.cointelegraph.com/uploads/2023-01/10b40ce5-c197-4714-857b-461175118937.png" alt="" title=""/><figcaption style="text-align: center;"><em>LTC/USD weekly value chart that includes bear flag breakdown setup. Supply: TradingView</em></figcaption></figure><p>As a rule, a bear flag breakdown transfer prompts the worth to fall by as a lot because the earlier downtrend's size. Making use of the identical setup to Litecoin brings its bear flag draw back goal to almost $30.50, or 65% decrease than the present LTC value.</p><h2>Litecoin value “head faux”?</h2><p>As mentioned earlier, Litecoin‘s value restoration has primarily occurred in keeping with related strikes throughout the risk-on market <a target="_blank" href="https://cointelegraph.com/news/bitcoin-price-targets-include-new-14k-dip-as-fed-s-powell-avoids-inflation" data-amp="https://cointelegraph-com.cdn.ampproject.org/c/s/cointelegraph.com/news/bitcoin-price-targets-include-new-14k-dip-as-fed-s-powell-avoids-inflation/amp" rel="noopener">due to cooling inflation</a><a target="_blank" href="https://cointelegraph.com/news/bitcoin-price-targets-include-new-14k-dip-as-fed-s-powell-avoids-inflation" data-amp="https://cointelegraph-com.cdn.ampproject.org/c/s/cointelegraph.com/news/bitcoin-price-targets-include-new-14k-dip-as-fed-s-powell-avoids-inflation/amp" rel="noopener">.</p><p>For instance, the Nasdaq-100 stock market index has risen approximately 15.50% between October 2022 and January 2023. Similarly, Bitcoin (<a target="_blank" href="https://cointelegraph.com/bitcoin-price" rel="noopener">BTC</a>) has rallied by greater than 50% since its November 2022’s low of round $15,500.</p><p>The weekly correlation coefficient between Litecoin and the Nasdaq-100 has been largely constructive at 0.35 on Jan. 27. Equally, the correlation between Litecoin and Bitcoin is now round 0.21.</p><figure><img src="https://s3.cointelegraph.com/uploads/2023-01/ffb44860-e6e0-4f34-b4ed-e720860da9ae.jpg" alt="" title=""/><figcaption style="text-align: center;"><em>Litecoin’s weekly correlation coefficient with Nasdaq-100 and Bitcoin. Supply: TradingView</em></figcaption></figure><p>However Mark Haefele, the chief funding officer at UBS International Wealth Administration — together with different many different analysts — has <a target="_blank" href="https://markets.businessinsider.com/news/stocks/stock-market-prediction-global-rally-downside-inflation-economic-data-2023-1" rel="noopener nofollow" data-amp="https://markets-businessinsider-com.cdn.ampproject.org/c/s/markets.businessinsider.com/news/stocks/stock-market-prediction-global-rally-downside-inflation-economic-data-2023-1?amp">noted</a> that the continued risk-on rally might be a “head faux.” In easy phrases, the continued Litecoin rally, below the affect of its risk-on counterparts, might be short-lived. </p><p>Impartial market analyst Capo of Crypto additionally <a target="_blank" href="https://twitter.com/CryptoCapo_/status/1616725974292340736" rel="noopener nofollow">agrees</a>, noting:</p><blockquote>“The best way the upward motion is occurring, the best way [higher-timeframe] resistances are being examined... it clearly seems to be manipulated, no actual demand. As soon as once more, the most important bull lure I've ever seen.”</blockquote><h2>Bullish situation for Litecoin</h2><p>Nonetheless, not everyone seems to be bearish on danger property akin to Litecoin. Standard market analyst Rekt Capital <a target="_blank" href="https://twitter.com/rektcapital/status/1618925729089224705" rel="noopener nofollow">sees</a> Litecoin rallying towards $160 within the coming weeks, citing a month-to-month chart setup as proven under.</p><figure><img src="https://s3.cointelegraph.com/uploads/2023-01/2387b700-1c8e-4bde-8ec0-b5c603f776ce.png"/><figcaption style="text-align: center;"><em>LTC/USD month-to-month value chart. Supply: TradingView</em></figcaption></figure><p>Notably, the chart exhibits LTC‘s value present process a powerful rebound transfer after testing a multiyear ascending trendline resistance contained in the $40 to $50 space, which may qualify it for an additional uptrend towards the $120–$160 vary.</p><p>These upside targets have beforehand acted as helps and resistances. Breaking this key resistance may due to this fact invalidate the bear flag setup, which occurs 54% of all time, in line with <a target="_blank" href="https://thepatternsite.com/flags.html" rel="noopener nofollow">research</a> by veteran investor Tom Bulkowski.</p><p class="post-content__disclaimer">This text doesn't comprise funding recommendation or suggestions. Each funding and buying and selling transfer includes danger, and readers ought to conduct their very own analysis when making a call. </p><template data-name="subscription_form" data-type="markets_outlook"/> </div><script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script> <br>[ad_2] <br><a href="https://news.google.com/__i/rss/rd/articles/CBMiXWh0dHBzOi8vY29pbnRlbGVncmFwaC5jb20vbmV3cy9saXRlY29pbi1oZWFkLWZha2UtcmFsbHktbHRjLXByaWNlLXRlY2huaWNhbHMtaGludC1hdC02NS1jcmFzaNIBYWh0dHBzOi8vY29pbnRlbGVncmFwaC5jb20vbmV3cy9saXRlY29pbi1oZWFkLWZha2UtcmFsbHktbHRjLXByaWNlLXRlY2huaWNhbHMtaGludC1hdC02NS1jcmFzaC9hbXA?oc=5">Source link </a>