After a significant rise, the bulls seem to have loosened up a bit as the prices of the majority of tokens faced extreme consolidation. The crypto star, Bitcoin, had a significant recovery and surpassed $31,000. Additionally, the Lite version of Bitcoin, Litecoin, has shown an iconic rally over the past few days and is currently struggling to break above the $113 resistance zone.
Both proof-of-work blockchains will experience a halving event in the coming months, hence the further pullback in LTC prices. On the other hand, BTC prices are also facing a further drop. It may seem like both might face a halt in the upside ahead of the halving, but both tokens are in the midst of a breakout trend.
LTC and BTC prices recently suffered a breakout, although they were unable to reach the intermediate highs. If they had marked the larger targets and dropped them, it would have appeared as a fake breakout. But prices are hovering around resistance, so a retracement and failure to perform their crucial retests after the breakout could be imminent.
Therefore, it can be said that both are in the midst of a breakout trend. So what’s the next step?
Litecoin price appears to have reached the upper resistance of the multi-year downtrend line. As a result, popular analyst Rekt Capital predicts that a deep retracement will be followed by a 70% decline.
Furthermore, the price of Bitcoin (BTC) fell below $31,000, again providing an opportunity for traders to accumulate more. The price is at the top of the bullish consolidation and is therefore closer to a massive explosion, which could lift the levels beyond the yearly highs.
