Litecoin

An analyst has explained that a bear flag is potentially forming for Litecoin, which, if confirmed, might cause a decline for LTC to this level. 
<h2 id="litecoin-could-be-in-danger-of-deep-decline-due-to-this-bear-flag">Litecoin Could Be In Danger Of Deep Decline Due To This Bear Flag</h2> 
In a <a href="https://twitter.com/ali_charts/status/1742558181375496619" target="_blank" rel="noopener nofollow">post</a> on X, analyst Ali has pointed out a possible bear flag taking form for Litecoin. A “<a href="https://www.newsbtc.com/news/bitcoin-dominance-altcoin-season-58/" target="_blank" rel="noopener ">bear flag</a>” is a pattern in technical analysis that, as its name implies, looks like a flag on a pole. 
The pattern takes shape when the asset observes a sharp downward move and follows it up with a period of consolidation. This consolidation happens toward a slight overall uptrend, meaning that its upper level is created by connecting higher highs, while the lower line joins together higher lows. 
The downtrend prior to the consolidation makes up for the pole, while the channel looks like a flag. Inside the flag, the price is naturally likely to feel resistance at the upper level, while support is at the lower one. 
The bear flag is popularly considered a continuation pattern, meaning that the downtrend would continue after the pattern forms. This continuation happens as the price finally ends its consolidation and crashes through the lower level of the flag. 
Like the bear flag, there is also the “<a href="https://www.newsbtc.com/analysis/xrp/xrp-bull-run-bull-flag-formed/" target="_blank" rel="noopener ">bull flag</a>,” which forms in the opposite circumstances. In the case of this pattern, the price breaks out with a sharp upward move after the consolidation period toward the downside finishes. 
Now, here is the chart shared by the analyst that sheds light on a possible bear flag forming in the 3-day price of Litecoin: 
<img loading="lazy" decoding="async" class="alignnone aligncenter" src="https://pbs.twimg.com/media/GC7Bhr5WkAAxOsd?format=jpg&amp;name=4096x4096" alt="Litecoin Bear Flag" width="2233" height="1452"> 
From the graph, it’s visible that Litecoin’s 3-day price has possibly been consolidating inside a bear flag during the last few months. With the latest crash in the asset, though, the price appears to finally be breaking out of the pattern towards the down direction. 
This plunge in the coin has occurred as the rest of the cryptocurrency sector has also reverberated with a <a href="https://www.newsbtc.com/bitcoin-news/bitcoin-plunges-more-than-6-amid-matrixports-contradictory-reports/" target="_blank" rel="noopener ">crash</a>. Unlike many other assets, however, LTC never enjoyed any sharp rally to kickstart the year, so the plummet has been especially damaging for it. 
“Post-recent dip, the outlook for Litecoin appears challenging,” notes Ali. “If the selling pressure continues, LTC might see a push down to $38, potentially confirming a bear flag formation.” 
Generally, breakouts from any flag pattern are of about the same length as the preceding pole, which is why the analyst has selected this target. If Litecoin’s potential drawdown does play out in this fashion, then the asset would have seen a decrease of more than 41% from the current price levels. 
<h2 id="ltc-price">LTC Price</h2> 
Litecoin had been floating above the $73 mark just earlier, but following this 11% crash, the coin is now down to just $65. 
<img loading="lazy" decoding="async" class="alignnone size-medium aligncenter" src="https://www.tradingview.com/x/LUX0GCjs/" alt="Litecoin Price Chart" width="1534" height="868">

Litecoin Bear Flag Could Cause 41% Crash To This Level, Analyst Explains

Table of Contents

NewsBTC

Other articles published on Jan 4, 2024

1inch Monthly Digest: December 2023

Vehicle Loan Company Defrauded by AI-Aided Scam: Three Arrested in Delhi

Walgreens Boots Alliance Reports Strong Q1 With $34.88B Revenue, Slashes Dividend

Goldman Sachs Eyes Key Role in BlackRock and Grayscale Bitcoin ETFs Approval

Celsius Network to Unstake All Ethereum Holdings to Pay Back Creditors

Binance threatens to delist these privacy coins

Join our free newsletter for daily crypto updates!