If we are to break out to the upside, we absolutely must have Bitcoin going higher as well.
Litecoin markets went back and forth on Wednesday as we are trying to catch our breath after a bigger move higher. The $125 level underneath should offer a certain amount of support, and it would not be surprising to see buyers step back in. Furthermore, we have the 50-day EMA sitting just below there and recently offering support, so it all comes together quite nicely.
If we were to break down below the 50-day EMA, then it is possible that the market could break towards the $100 level. That is an area that will attract a lot of attention, not only because it is a large, round, psychologically significant figure, but it is also an area where we have bounced from a couple of times. If we were to break down below the $100 level, that would be extraordinarily negative and could send the Litecoin market reeling.
If we can break above the highs of the last couple of sessions, it is very possible that Litecoin may go looking towards the $135 level, maybe even the 200-day EMA that sits just below the crucial $150 level. That is an area that will attract a lot of attention, and breaking above that would officially kick this into a “bullish market.” In that scenario, we could go much higher.
If we are to break out to the upside, we absolutely must have Bitcoin going higher as well. Furthermore, we would also need to see an overall attitude of “risk-on” when it comes to the crypto markets, as Litecoin is an altcoin, meaning that it needs an overall attitude of strength in the markets to make it go higher. The market looks as if it is trying to form a bit of a “rounding bottom” as well, so there are a lot of things at play here. Whether or not it is a trend change, it is still far too early to tell. However, we are certainly making an argument for that, so at this point, we need to be very cautious. I think short-term pullbacks will continue to be thought of as buying opportunities. If we break down below the 50-day EMA, I will revisit this market closer to the $20 level.