Short-term Litecoin investors can profit if Bitcoin moves in this direction
- LTC was in a slight uptrend.
- A bullish BTC would pump it towards $77.12.
Litecoin (LTC) briefly fell below $75 after BTC fell below $17.77K on December 15th. At press time, LTC was trading at $74.95 and appeared poised for an upside move if BTC moves above $17.77K.
The 4-hour chart showed that LTC may have reached its short-term low and was poised for a reversal. Should an uptrend occur, LTC will face the main resistance target at $77.12.
LTC is stuck in a parallel channel: will it break down or move within the channel?
Source: LTC/USDT on TradingView
The 4-hour chart showed that the price of LTC has been moving within a parallel channel since November 22. At the time of writing, the LTC price was moving in the lower part of the channel, showing a slightly bullish signal.
With the lower area of the channel as a buy/demand zone, LTC can develop an uptrend. This will take LTC past the immediate resistances of $75.07 and $75.49 before focusing on the main target of $77.12. The $77.12 level is a bearish order block, which is also the midpoint of the parallel channel.
It is worth noting that the Relative Strength Index (RSI) registered an uptick, although it was deep in the lower range. This shows that buyers counteracted selling pressure. Thus, the buying pressure can increase as the buyers gain more influence.
In addition, On Balance Volume (OBV) showed an upward trend after a steep decline. This revealed that trading volume was increasing and could help increase buying pressure in the coming hours.
Therefore, LTC can move up and break the midpoint of the parallel channel at $77.12.
However, a break during the parallel channel will invalidate the above forecast. Such a downside breakout would drive LTC towards $72.53 or $71.18, especially if BTC is bearish.
The spot and derivatives market is positive on LTC
Source: Sentiment
Sentiment data showed that LTC was bullish in the spot and derivatives markets. In particular, the aggregate weighted sentiment climbed higher into positive territory.
Similarly, the Binance Funding Rate for the USDT/LTC pair rose into positive territory. Investors were therefore optimistic about LTC in both markets.
This could mean that LTC’s uptrend could strengthen and drive prices higher. However, if BTC’s performance falters, the above forecast will be invalid as LTC will be bearish.
