The Litecoin price has been enjoying a decent run of gains for the month of May, having jumped over 35%. LTC/USD has pushed to the highest levels since June 2018, when the market at the time was firmly within a steep decline. The moves observed since the beginning of the year have without a doubt proven the bull market has returned.
Bull Market Here to Stay
At the start of 2019, LTC/USD was trading down at a low of $29, just off the 2018 bottom of $25. The price has gone on to rally a whopping 320%, up to the most recent high of $122. There aren’t any signs of a slowdown from this current momentum, as any period of a dip, is bought back with vengeance by the bulls.
There is strong support providing the necessary comfort for the bulls in their price recovery – a long-running ascending trend line. It has been in play since February and supported LTC/USD during the times of price dips. The biggest bounce came on 30th April, when the price met with the noted trend line to then see significant buying in May.
Following the noted guidance from the above-detailed support, the price action formed a bullish pennant pattern structure. The formation was breached by the bulls just some days ago on 24th May, carrying the price through and convincingly above the $100 price mark. LTC/USD has since managed to sustain the elevated levels, with room for further moves north.
Weekly Chart View
Price action via the weekly chart has seen a weekly push and close above a key barrier. The breach allows LTC/USD to continue its pursuit to a full recovery of the 2018 bear market. Consistent resistance barrier breakdowns are making the retest of the current all-time-high area ever likely.
Given the current pace of recovery, buys are increasingly more attractive. The first opportunity of entry can be observed via the 4-hour chart, as LTC/USD moves within the confinements of a pennant pattern. A target to the upside is seen up at $165, the next major barrier zone. Litecoin last traded up within this territory in May 2018. A stop for this entry would be placed just below the noted pennant formation at $108.
Should the above-detailed structure fail to provide the necessary support, then wait for a potential pullback towards the lower zone. The prior acting supply area that will serve as demand tracks from $108 down to $97.
Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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