Litecoin hits fresh 2022 high versus Bitcoin — But will LTC price ‘halve’ before the halving?

Litecoin (LTC) has emerged as one in every of the uncommon winners in the ongoing cryptocurrency market meltdown led by the FTX change’s collapse.

LTC price outperforms BTC, ET

The 2011-born altcoin rallied almost 16% month-to-date (MTD) to achieve $62.75 on Nov. 22, outperforming its high rivals, Bitcoin (BTC) and Ether (ETH), which lo roughly 25% and 30%, respectively, in the similar interval.

LTC/USD every day price chart. Source: TradingView

Furthermore, the LTC/BTC price additionally rallied to new heights, gaining 50% in November to determine a brand new yearly high of 0.003970 BTC on Nov. 22.

As Cointelegraph reported, Litecoin diverged from the broader cryptocurrency market downtrend earlier this month with its halving slated for August 2023. LTC has additionally acquired an endorsement from none aside from Michael Saylor for being a Bitcoin-like “digital commodity.” 

Nonetheless, indicators of bullish exhaustion are rising.

Litecoin price fractal hints at 50% correction

Litecoin’s rally versus Bitcoin has made the LTC/BTC pai overvalued, in accordance with its weekly relative power index (RSI) studying.

Notably, LTC/BTC’s weekly RSI, which measures the pair’s pace and alter of price actions, surged above 70 on Nov. 22. An RSI studying above 70 is taken into account overbought, which many conventional analysts see as an indication of an impending bearish reversal.

Historically, Litecoin’s overbought RSI readings versus Bitcoin have been adopted by main price corrections. For occasion, in April 2021, the LTC/BTC RSI’s climb above 70 met with a robust selloff response, ultimately pushing the pair down by 75% to 0.001716 BTC by June 2022.

Similarly, an overbought RSI in April 2019 led to a 70% LTC/BTC price correction by December 2019.

The similar RSI fractal now hints at Litecoin’s chance of present process a 50% wipeout versus Bitcoin if coupled with LTC/BTC’s multi-year descending channel sample, as proven beneath.

Litecoin hits fresh 2022 high versus Bitcoin — But will LTC price 'halve' before the halving?
LTC/BTC weekly price chart. Source: TradingView

TypicalLTC/BTC turns overbought after hitting the channel’s higher trendline, which follows up with a correction towards the decrease trendline.

As a outcome, the pair dangers a drop to or beneath 0.001797 BTC by December 2022 if the fractal repeats, down greater than 50% from the present price ranges. 

Conversely, a decisive breakout above the higher trendline might have LTC/BTC take a look at its 200-week exponential shifting common (200-week EMA; the blue wave) at 0.005319 BTC, up 30% from present price ranges, as the subsequent upside goal.

LTC/USD pair “bear flag” 

Litecoin eyes an analogous price crash versus the U.S. greenback because it paints a bear flag sample on the weekly charts.

Related: Cathie Wood’s ARK Invest provides extra Bitcoin publicity as GBTC, Coinbase inventory hit new lows

Bear flags are bearish continuation patterns that seem when the price consolidates increased inside a parallel, ascending channel vary after a robust transfer decrease (known as flagpole). They resolve after the price breaks beneath the decrease trendline and falls by as a lot as the flagpole’s top.

Litecoin hits fresh 2022 high versus Bitcoin — But will LTC price 'halve' before the halving?
LTC/USD weekly price chart. Source: TradingView

LTC has been buying and selling inside the bear flag vary, eyeing a breakdown beneath its decrease trendline assist of round $55. The bear flag draw back goal is round $32.40 if it breaks decisively beneath the stated assist.

In different phrases, a 50% decline by December 2022.

This article doesn’t include funding recommendation or suggestions. Every funding and buying and selling transfer entails danger, and readers ought to conduct their very own analysis when making a choice.