Another limb down for Bitcoin (BTC) could nevertheless trigger further losses for LTC fixed the beardown correlation betwixt their terms movements
Litecoin (LTC) was among large altcoins to endure dense losses pursuing Bitcoin's flash clang that triggered wide selling crossed the crypto market.
The 14th ranked cryptocurrency sank 18% connected Tuesday to interruption beneath cardinal enactment levels. Even with today’s rebound, LTC’s terms is inactive 11% down connected its 24-hour opening value.
But bulls are apt to propulsion higher, with targets adjacent the intelligence $200 and $230 levels.
According to method expert Ali Martinez, LTC is inactive bullish contempt the 18% nosedive seen connected Tuesday. Per the analyst, the Litecoin web has registered an summation successful caller addresses, which suggests an inflow of “new money” arsenic investors clasp assurance successful the terms of Litecoin going up.
#Litecoin bull tally isn't implicit yet! 🚀
The fig of caller addresses joining the $LTC web continues making higher highs. Nearly 220K caller addresses were created yesterday.
New addresses are a proxy of caller wealth coming into #LTC and could beryllium interpreted arsenic a motion of optimism. pic.twitter.com/aeGjYgER6A
— Ali Martinez (@ali_charts) September 7, 2021
However, the bullish outlook mightiness not clasp if Bitcoin (BTC) continues to conflict with bearish unit astir $46,000. If the benchmark cryptocurrency sees further downside, a cascade effect crossed the marketplace could see Litecoin terms diving to caller lows.
Litecoin terms outlook
LTC/USD remains supra a important buffer portion connected the regular chart, which suggests bulls mightiness fancy caller gains if marketplace sentiment improves.
LTC/USD regular chart. Source: TradingView
The horizontal enactment enactment astir $165 that presently anchors LTC acted likewise successful February and March this year, providing the springboard that acceptable Litecoin prices towards caller all-time highs of $410 reached successful May.
If bulls conquer absorption astatine $185, they could people $200 and past the 5 September highs of $233.
The flip broadside could spot LTC/USD range-bound successful the $165 to $185 zone, with the 200 EMA connected the regular illustration providing a pivot constituent adjacent $170.
The RSI and MACD indicators suggest bears are successful control, and the regular candlestick presently portrays a conflict betwixt bulls and bears. If sellers puncture the enactment portion and there's different limb down beneath $160, Litecoin terms could accelerate its diminution towards the erstwhile enactment level astir $142.
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