- Litecoin price retreated after soaring to a high of $68.68.
- Major stock indices like Hang Seng, Nikkei 225, and Nasdaq 100 have plunged.
- There are also concerns about the rising bond yields.
Litecoin price retreated in the overnight session after it retested the important resistance level at $68.70. The LTC coin dropped to a low of $65.18 on Tuesday, lower than this week’s high of $68.70. It has jumped by more than 15% from the lowest level in September.
Bond rout continues
Litecoin and other cryptocurrencies retreated as a sense of fear spread in the financial market. In the United States, the Russell 2000 and the Dow Jones retreated by more than 0.50% on Monday. The same trend happened in Asia on Tuesday, where Hong Kong’s Hang Seng index crashed by more than 3.45% and Japan’s Nikkei 225 fell by 1.65%.
European equities have also been in the red recently. The German DAX index futures slipped by 0.31% while the CAC 40 and FTSE 100 dropped by over 1%. All this performance is a sign that investors are getting afraid.
A key reason for this price action is the ongoing bond rout in the US. Short-term and long-term bond yields have surged in the past few months. Data shows that the 10-year bond yield jumped to a high of 4.70%, the highest point since 2007. The 30-year bond yield also jumped to the highest point in decades.
Therefore, the most popular bond ETFs like the TLT, VGLT, and BND have crashed to their lowest levels in almost a decade. This price action is happening as risks to the American economy continue. For example, there are concerns about the soaring US public debt.
The American economy has seen its debt jump to over $33 trillion, leading many holders like Saudi Arabia and China to start dumping their holdings. Therefore, the implication for all this is that interest rates could remain higher for longer, pushing more people to move to short-term money market funds.
Litecoin price forecast
The 4H chart shows that the LTC price rose to the important resistance point at $68.68, the highest point on September 19th and August 30th. This price was the neckline of the inverted head and shoulders pattern.
Litecoin price has moved above the 50-day and 25-day moving averages. It has also jumped above the ascending trendline shown in blue. Therefore, there is a likelihood that the LTC coin will continue rising in the coming days. A move above the resistance at $68.68 will point to more upside.
