LTCUSD is in the mean time consolidating inside a symmetrical triangle pattern, which could possibly be seen as a bullish flag on longer-term charts. This is normally considered a primary continuation signal, so a break earlier the resistance spherical $145 would possibly indicate one different leg bigger.
The 100 SMA is above the longer-term 200 SMA so the path of least resistance is to the upside. In completely different phrases, the rally is additional vulnerable to resume than to reverse. The mast of the flag spans $90 to $160 so the following rally may be of the an identical peak.
Stochastic will also be pointing as a lot as confirm that bullish momentum is in play. However, RSI is treading sideways to suggest that consolidation would possibly keep it up.
LTCUSD is being pulled in reverse directions as retailers keep shut tabs on the launch of bitcoin futures whereas moreover being prone to dollar power. The former is renewing curiosity in cryptocurrencies mainly, allowing them to hint bitcoin value good factors. Meanwhile, the latter is due to stronger than anticipated jobs data launched ultimate Friday and expectations of a worth hike this week.
However, December hike expectations have been priced in for a protracted whereas already so there’s a strong likelihood of profit-taking happening by way of the FOMC announcement. Besides, retailers are additional concerned with tightening possibilities subsequent 12 months and the updated monetary forecasts should current greater clues.
Recall that the sooner FOMC minutes signaled a weaker inflation outlook, which was moreover confirmed by Fed head Yellen. Should this be mirrored of their projections, the dollar would possibly lose flooring to litecoin and spur an upside break from the flag.
On the alternative hand, optimistic estimates backed by a strong displaying from CPI and retail product sales figures due this week would possibly nonetheless lead to additional good factors for the dollar. A draw again break from LTCUSD consolidation would possibly spur an even bigger pullback from the rally, in all probability drawing help from the shifting averages’ dynamic inflection elements.