30-08-2016
10:54 am
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Coince - Bitcoin Investment Solution

Litecoin Price Technical Analysis – Target Achieved, Take Profits




Litecoin price traded higher to help buyers gain some traction. Our buy target was hit and moving ahead we can plan on buying dips. Intraday Support Level (Bitfinex) can be at $3.20. Intraday Resistance Level (Bitfinex) may be at $3.32.
litecoin price. target achieved
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Key Highlights

  • Litecoin price formed a major triangle pattern on the hourly chart (data feed via Bitfinex), and we were waiting for a break to buy Litecoins.
  • A break happened Intraday, and the price traded higher towards the $3.30 resistance area.
  • The price stalled right near a major bearish trend line, as highlighted yesterday on the 2-hours chart (data feed from HitBTC).

Litecoin price traded higher to help buyers gain some traction. Our buy target was hit and moving ahead we can plan on buying dips.

Buy dips?

Yesterday, I mentioned that buying with a break can be a good idea. There were many sells earlier, which we succeeded. However, the sellers were exhausted, and it was the right time to place a buy order. There was a triangle pattern on the hourly chart (data feed via Bitfinex), and we were waiting for a close above it to enter a buy trade. The price did close above it and even traded above the 6.4% Fib retracement level of the last leg from the $3.20 high to $3.07 low. A new weekly high was created near $3.30 (data feed via Bitfinex) before the price started correcting lower once again.

Litecoin Price Technical Analysis

The most important point to note that the price closed above the 100 hourly simple moving average (data feed via Bitfinex), suggesting that the recent break was crucial. The price is currently correcting lower, and it looks like it may extend correction. However, we can wait for the right time to analyze and enter a buy trade one dips moving ahead. An initial support can be seen around the 50% Fib retracement level of the last leg from the $3.08 low to $3.31 high. If the price extends the downside. The most important support can be around the 100 hourly simple moving average, which is sitting near the 61.8% Fib retracement level of the last leg from the $3.08 low to $3.31 high. Buyers may take a stand near the 100 MA and the stated fib confluence area, and we may attempt a small buy around the highlighted support area.

If we look at the higher time frame chart like the 2-hours chart with the data feed from HitBTC, then the price recently found resistance near a major bearish trend line, which we have been following for a couple of days now. The highlighted trend line and resistance area suggest that the price may move down in the near term as a part of a correction.

Litecoin Price Technical Analysis

On the downside, the 38.2% Fib retracement level of the last leg from the $3.10 low to $3.39 high can act as a support area. The stated fib level is positioned near a previous broken trend line. So, overall there is a nice support forming near $3.25 where buyers may appear if the price moves down from the current levels.

Looking at the indicators:

Hourly MACD – The MACD is in the bearish sign, calling for a downside move in the short term.

Hourly RSI – The RSI is above the 50 level, which is a positive sign for bulls.

Intraday Support Level (Bitfinex) – $3.20

Intraday Resistance Level (Bitfinex) – $3.32

 

Charts from Bitfinex and HitBTC; hosted by Trading View

Disclaimer: The information contained herein is not guaranteed, does not purport to be comprehensive and is strictly for information purposes only. It should not be regarded as investment/trading advice. All the information is believed to come from reliable sources. NewsBTC does not warrant the accuracy, correctness, or completeness of information in its analysis and therefore will not be liable for any loss incurred.

Published by

Aayush Jindal

Aayush has spent over seven years as a financial markets contributor and observer. He specializes in market strategies and technical analysis, comes with an IT background. He possess strong technical analytical skills and is well known for his entertaining and informative analysis of the currency and commodities markets. He is a software engineer by profession, loves blogging and observing financial markets.

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