Litecoin price prediction: US inflation, Fed decision

Posted on

  • Litecoin price has formed a head and shoulders pattern.

  • The US will publish the latest inflation data on Tuesday.

  • The Fed will give its rate decision on Wednesday.

Litecoin price formed a small doji pattern ahead of upcoming US inflation data and central bank decisions. It fell as low as $73.50, its lowest level since November 29. It is down more than 12% from this year’s high.

Inflation and central bank decisions

Litecoin And other cryptocurrencies pulled back on Monday ahead of a busy week. The US will publish the latest US consumer inflation data on Tuesday. Economists expect the data to show that inflation declined in November.

In fact, they expect the headline Consumer Price Index (CPI) to fall from 7.7% in October to 7.3% in November. Supporting this view is the fact that gasoline prices have dropped to their lowest levels in more than 12 months.

Core inflation, which excludes volatile food and energy products, is expected to decline to 6.0% from 6.5%.

These figures will come a day before the Federal Reserve’s interest rate decision. Economists expect data to show the Fed will make a relatively low rate decision this week. To be precise, they believe the bank will hike rates by 0.50%, down from a previous increase of 0.75%.

Apart from the Federal Reserve, other major central banks like the Bank of England (BoE) and the European Central Bank (ECB) will hike their rates.

Historically, the price of Litecoin reacts negatively to higher interest rates. Therefore, any indication that they slow down their rate hikes in 2023 would be a bullish signal.

Meanwhile, the hash rate of Litecoin has started to increase. Data shows that LTC rose to 567 TH/s on Monday. This increase was higher than last week’s low of 528 TH/s. As I wrote, hashrate is an important statistic that measures the health of a network. Here,

Litecoin Price Prediction

LTC/USD Chart by TradingView

LTC price has been under pressure in the past few days. It has managed to move below the 25-day and 50-day moving averages while the Relative Strength Index (RSI) has moved below the neutral level. It is just above the crucial $73.50 support level, which was the lowest level since November 26.

The coin has also formed a head and shoulders pattern. In price action analysis, this pattern is usually a bearish signal. Therefore, the downtrend in Litecoin price might resume. If it does, the next major support to watch is at $65. A move above the $75 resistance would invalidate the bearish view.

how to buy litecoin


eToro offers a wide range of cryptos such as bitcoin, XRP and others, along with crypto/fiat and crypto/crypto pairs. eToro users can connect with, learn from, and copy or be copied by other users.

Buy LTC with eToro today


Bitstamp is a leading cryptocurrency exchange offering trading in fiat currencies or popular cryptocurrencies. Bitstamp is a fully regulated company that offers users an intuitive interface, a high level of security for your digital assets, excellent customer support, and multiple withdrawal methods.

Buy LTC with Bitstamp today

Leave a Reply

Your email address will not be published. Required fields are marked *