Short-term Litecoin investors could profit if Bitcoin moves in this direction

• LTC was in a slight uptrend.
• A bullish BTC would pump it towards $77.12.

Litecoin (LTC) briefly fell beneath $75 after BTC dropped beneath $17.77K on 15 December. At press time, LTC was buying and selling at $74.95 and appeared poised for an upside transfer if BTC strikes above $17.77K.  

The 4-hour chart confirmed that LTC might have reached its short-term low and was prepared for a reversal. Ought to an uptrend happen, LTC could be going through the primary resistance goal at $77.12. 

LTC is caught in a parallel channel: will it break down or transfer inside the channel?

Supply: LTC/USDT on TradingView

The 4-hour chart confirmed that the value of LTC has been shifting inside a parallel channel since 22 November. On the time of writing, the LTC worth was shifting within the decrease a part of the channel, exhibiting a barely bullish sign.  

With the decrease space of the channel performing as a shopping for/demand zone, LTC may develop an uptrend. This might take LTC previous the fast resistances at $75.07 and $75.49 earlier than specializing in the primary goal at $77.12. The $77.12 stage is a bearish order block, which can also be the midpoint of the parallel channel.  

It’s value noting that the Relative Power Index (RSI) recorded an increase, though it was deep within the decrease vary. This exhibits that patrons had been countering promoting strain. Thus, shopping for strain might enhance as patrons achieve extra leverage. 

As well as, the On Stability Quantity (OBV) confirmed an upward development after a steep decline. This revealed that the buying and selling quantity elevated and will assist enhance shopping for strain within the coming hours.  

Subsequently, LTC may transfer up and break the midpoint of the parallel channel at $77.12.  

Nevertheless, a break beneath the parallel channel would invalidate the above forecast. Such a draw back breakout would drive LTC in the direction of $72.53 or $71.18, particularly if BTC is bearish.

Spot and derivatives market bullish on LTC

Supply: Santiment

Santiment data confirmed that LTC was bullish within the spot and derivatives markets. Specifically, the general weighted sentiment climbed increased into optimistic territory.  

Equally, the Binance Funding Fee for the USDT/LTC pair rose into optimistic territory. Buyers had been thus optimistic about LTC in each markets.  

This might imply that LTC’s uptrend may strengthen and drive costs increased. Nevertheless, if BTC’s efficiency falters, the above forecast could be invalid as LTC will likely be bearish.