Litecoin, the silver counterpart to Bitcoin as digital gold, is usually a number one indicator throughout the crypto market.
If one explicit Litecoin chart is correct, it might be signaling an epic plunge in altcoins in opposition to Bitcoin within the coming months.
Litecoin Leads the Approach in Crypto, However Is It Towards an Epic Plunge?
Ever for the reason that crypto bubble popped, altcoins have been falling in worth to absolute extremes.
As a lot as 99% of the worth has been utterly erased from many high altcoins that had been all the fad on the peak of the bubble-induced irrational exuberance.
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Initially of final 12 months, altcoins like Litecoin and others confirmed a glimmer of hope that their woes had been reversing.
Buzz surrounding Litecoin’s halving last year helped cause the altcoin to rise as a lot as 600% at its highs.
Throughout this time, Litecoin led the crypto market right into a reversal. However the reversal was later dominated by Bitcoin, which went on a parabolic rally from April 2019 to June 2019.
The monstrous rally in Bitcoin absorbed extra of what little remaining worth from the altcoin market, together with Litecoin, which fell again to a low of round $35.
Not solely did Litecoin lead the unique rally, nevertheless it additionally led the market in decline following Bitcoin’s rally.
As soon as once more, Litecoin has been main the market, inflicting different altcoins to interrupt out from downtrend resistance and assist propel even Bitcoin to native highs.
The crypto market is satisfied a brand new uptrend is forming, nonetheless, this will solely be true for Bitcoin.
LTC/BTC Chart Reveals Multi-Yr Head and Shoulders High
In line with the LTC/BTC value chart, Litecoin might be forming a large, multi-year head and shoulders high that would trigger critical destruction to not solely the worth of Litecoin, however your complete altcoin market.
Altcoins sometimes rise and fall in tandem, and closely depend on Bitcoin’s pattern to dictate general route. Nevertheless, oftentimes Bitcoin’s rallies cannibalize altcoins because of FOMO from one crypto asset to a different.
Head and shoulders high targets are sometimes measured by the peak of the top from the bottom of the pattern line. This might end in an over 70% drop in Litecoin in opposition to Bitcoin on the LTC/BTC buying and selling pair.
It additionally may imply a big drop additional in altcoins throughout the board, as Litecoin has traditionally acted as a number one indicator for the remainder of the market.
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Head and shoulders tops often also often result in a strong throwback to help turned resistance as might be seen within the chart examples above. This throwback would clarify the present bullish rally, however would in the end trigger the rally to fail as a bearish retest earlier than an epic plunge deeper.
