close icon

Litecoin Bulls Searching for Fibonacci Support

Litecoin, the fifth largest cryptocurrency by market cap, reached its all-time high in mid-December, 2017, accompanied by most other virtual tokens, including the biggest one in the face of Bitcoin. The following crash, which erased almost 70% of Bitcoin’s market cap, wiped out over 71% of Litecoin’s capitalization after the price dropped from over $370 to less than $107 by February 6th, 2018.

Fortunately for LTCUSD bulls, the pair recovered to $253 fourteen days later, in unison with the general crypto market. As of this writing, the price is hovering around $209. In order to prepare for the market’s future intentions regarding Litecoin, we need to take a look at its price charts and see if an Elliott Wave pattern would emerge and give us a hint.

litecoin elliott wave analysis

Bitfinex’s hourly chart of LTCUSD allows us to see that the rally from $106 to $253 takes the shape of a five-wave impulse, labaled 1-2-3-4-5. The sub-waves of wave 3 are also clearly visible, but in that case the market ignored the guideline of alternation since both corrective waves move sideways. Wave 2 is a running flat correction, while wave 4 is a triangle.

Nevertheless, every impulse is followed by a three-wave retracement in the opposite direction. That is what we believe has been in progress since February 20th, when Litecoin touched $253. The decline to $181 is marked as wave A, followed by a smaller three-wave advance to $233 in wave B. If this count is correct, more weakness should be expected in wave C towards the 61.8% Fibonacci level. In other words, the bears remain in charge with short-term targets between $170 and $160. Once there, the 5-3 wave cycle would be complete and the uptrend should resume. Eventually, the bulls should be able to lift the price of Litecoin above $253. As long as the starting point of the impulsive pattern at $106 holds, this is the wave count to rely on.

Stay informed with our newsletter

Latest Elliott Wave analysis on different topics delivered to you weekly.

Privacy policy
You may also like:

Bitcoin Bears Needed a Catalyst. Tesla Obliged

Tesla CEO Elon Musk announced the company would stop accepting Bitcoin as payment due to environmental concerns. The EV-maker’s Bitcoin stunt lasted for just three months, apparently the time it took for its CEO to realize how inefficient and energy-consuming BTC mining is, something we wrote about in March. The price of Bitcoin, of course,…

Read More »

Harmony Coin Draws Bullish Elliott Wave Setup

Bitcoin, Ethereum, Dogecoin, you name it. There are already thousands of cryptocurrencies in existence, most of which serving no other than speculative purpose. The fact that even the big guys on Wall Street can’t resist the urge to dip their toes in the space only makes retail investors more confident. We remain skeptical. Today, however,…

Read More »

ETHUSD Wave Pattern Can Disappoint the Bulls Soon

For the crypto space, it is 2017 all over again, except bigger. The two biggest cryptocurrencies – Bitcoin and Ethereum – exceeded their previous records and then some. ETHUSD, in particular, is now approaching $2600 and is not very far from doubling its January 2018 peak level. Furthermore, ETHUSD is up 32-fold from its December…

Read More »

Bitcoin Can Never Be a Global Currency. Here’s Why

Bitcoin’s relentless rise in the past year forced even some its most vocal critics to throw in the towel. Kevin O’Leary, for example, used to call Bitcoin “garbage”, but recently said that he has 3% of his portfolio in BTC and ETH. And indeed, many, us included, have been calling Bitcoin a bubble for years,…

Read More »

Bitcoin: When Prediction is Hard, You Can Still Prepare

Bitcoin bulls are in retreat, at last. After the cryptocurrency’s meteoric surge to $42 000 at the start of 2021, the price dipped below $29 000 earlier today. And since BTC is one of the most-widely followed assets these days, experts were quick to offer their views. J.P. Morgan analysts stated that $40k is a…

Read More »

Ahead of Bitcoin ‘s $3k+ Fourth Wave Correction

Thursday was a disappointing day for Bitcoin bulls. The largest cryptocurrency by market cap fell by over $2000 to an intraday low of $16 218 yesterday. Given Wednesday’s high of $19 490, BTCUSD lost over $3200 per coin in just two days. Instead of the new all-time high many expected, traders had to swallow a…

Read More »

Ahead of Bitcoin ‘s 2017-Style Surge with Elliott Wave

Bitcoin is surging again. The cryptocurrency is approaching $16k in a rally reminiscent of the late-2017. Near-zero interest rates make speculative instruments such as Bitcoin very appealing. The BTC-as-an-inflation-hedge narrative is also helping the bulls right now with the Fed and ECB pumping cash into the financial system. But Bitcoin is far from a true…

Read More »

More analyses