Litecoin (LTC) label is up this day, hitting a novel three-week high amid a broader cryptocurrency market rally.
On Sep. 19, LTC label rose 3.85% to virtually $68.50, outperforming the crypto market that won 2% on the identical day. Nonetheless, the Litecoin market has underperformed the broader crypto market in 2023.
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Or no longer it’s down 3.85% yr-to-date (YTD) compared to the latter’s 39% gains in the identical length.
LTC/USD daily label chart. Supply: TradingViewFee cease bets enhance Litecoin’s label recoveryMost of this week’s consideration in the market is on the Federal Open Market Committee (FOMC) assembly concluding on Sep. 20. There, Federal Reserve officers will likely come to a resolution to cease the ongoing curiosity fee hikes.
The fee cease bets possess boosted traders’ bustle for food for volatile resources, with U.S. shares and most crypto resources rising earlier than the resolution. On the identical time, the U.S. dollar has underperformed in opposition to a basket of high foreign substitute, with its benchmark index down 0.5% week-to-date, including selloffs on Sep. 19.
U.S. dollar index daily efficiency chart. Supply: TradingViewLitecoin and the dollar’s weekly correlation coefficient has been negative since December 2021, meaning their likelihood of trending opposite to at least one yet every other remains high. LTC is, attributable to this truth, transferring better on Sep. 19 simultaneous to the dollar’s flinch moves.
LTC/USD vs. U.S. dollar index weekly efficiency chart. Supply: TradingViewLTC label: technical reboundLitecoin’s market gains on Sep. 19 come as an ingredient of a rebound pattern that started remaining week.
Notably, the shopping for started end to what looks to be a long-timeframe ascending trendline relief, which has capped Litecoin’s flinch makes an strive since December 2018. The LTC label has bounced 18.5% eight days after sorting out the talked about trendline.
LTC/USD weekly label chart. Supply: TradingViewRapid liquidationsLitecoin’s label gains has resulted briefly liquidations price around $477,300 on Sep. 19. In comparability, perfect $87,850 price of long positions possess confronted liquidations, as shown in the CoinGlass chart beneath.
LTC whole liquidation chart. Supply: CoinGlassLiquidating short positions require derivatives traders to purchase the underlying asset, which, coupled with the shopping for behavior in pickle markets, enhance the asset’s costs.
Litecoin label analysis for Q3/2023From a technical standpoint, a Litecoin label leap from its long-standing ascending trendline relief would possibly maybe presumably well prolong in opposition to its multi-month descending trendline resistance, as shown beneath.
LTC/USD weekly label chart. Supply: TradingViewThis ability that, LTC label can reach $78.50 as its next upside diagram in the impending weeks, up around 16.5% from present label levels. The $78.50-level has served as relief in March 2023 and June 2023 and became once also resistance in January 2023.
As effectively as, this level coincides with Litecoin’s 50-week exponential transferring moderate (50-week EMA; the red wave in the chart above).
This article does no longer relish investment advice or suggestions. Each investment and trading switch involves threat, and readers must peaceful habits their very possess study when making a resolution.