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Litecoin's Upswing amidst Broader Cryptocurrency Market Rally
Litecoin (LTC), on September 19th, experienced a bullish breakout, reaching a high not seen in the past three weeks. The day saw LTC's price surge by 3.85%, closing at approximately $68.50 and outpacing the broader cryptocurrency market which recorded a 2% growth on the same day. However, despite this positive performance, LTC has not been exceptional in the overall cryptocurrency market performance for 2023.
Betting on Interest Rate Pause Stimulates Litecoin's Recovery
Several market players are eyeing the Federal Open Market Committee (FOMC) meeting scheduled for conclusion on September 20th. This meeting is widely expected to result in a halt to the ongoing series of interest rate hikes. The anticipation of a potential rate pause has invigorated risk sentiment, leading to a surge in demand for volatile assets like U.S. equities and most cryptocurrencies. Simultaneously, the U.S. dollar has faltered against a basket of leading foreign currencies.
Litecoin Registers a Technical Rebound as Dollar Weakens
Litecoin and the U.S. dollar have maintained a negative correlation since December 2021, suggesting a high probability that their trends will diverge. Thus, as the dollar weakened, LTC experienced an upswing on September 19th. The gains in Litecoin's market value on that day can be attributed to a rebound trend that started a week earlier.
Litecoin's Price Surge Leads to Short Liquidations
The surge in Litecoin's price on September 19th resulted in the liquidation of short positions worth approximately $477,300. This is significantly greater than the mere $87,850 worth of long positions liquidated, essentially signaling a bullish sentiment in the market.
Third Quarter 2023 Price Analysis for Litecoin
Technically, if Litecoin's price maintains its rebound from the long-standing ascending trendline support, it could target the multi-month descending trendline resistance. Thus, targeting $78.50 as the next level of resistance in the forthcoming weeks, indicating a potential 16.5% uptick from the current price levels.
