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- Litecoin price broke down once again, and currently struggling to recover some ground.
- There is a monster barrier formed on 2-hours chart with data feed from HitBTC in the form of 100 simple moving average.
- Moreover, there is a bearish trend line resistance formed on the 30-min chart (data feed via Bitfinex) that may be seen as a resistance area.
- The price.
Litecoin price stayed down and traded lower. Every attempt by buyers to take the price higher failed as sellers enjoyed an upper hand.
Sell Near Trend Line Resistance?
Litecoin price after trading close to the $3.13 level on the 30-min chart (data feed via Bitfinex) failed and started to move down. The downside move was stalled near $3.02, as the all-important area of $3.00 came into the picture. Now, there is a bearish trend line formed on the 30-min chart, which can be seen as a sell area if the price continues to move higher from the current levels. There are a lot of bearish signs for Litecoins, as the price is below the 100 simple moving average (30-min chart and data feed via Bitfinex).
If the price moves higher, then an initial resistance can be around the stated moving average, as it is also positioned with the 23.6% Fib retracement level of the last drop from the $3.13 high to $3.02 low. A break above the 100 MA may encourage buyers, and could take the price towards the highlighted bearish trend line and resistance area. It holds a lot of importance in the near term, as sellers may step in to prevent the upside move. The 38.2% Fib retracement level of the last drop from the $3.13 high to $3.02 low is also aligned around the same trend line to act as a hurdle for buyers. Only a break above the highlighted bearish trend line and resistance area may call for more gains, taking the price towards the last swing high of $3.13.
However, when it comes to looking for barrier for Litecoin price, then the most important one is on the higher timeframe chart (2-hours chart with the data feed from HitBTC). The price failed on at least 10 times around $3.14-16 area, as the 100 simple moving average (H2) is positioned to act as a barrier for more gains. Furthermore, the 50% Fib retracement level of the last drop from the $3.28 high to $3.019 low is also situated near the 100 MA resistance area, suggesting that $3.16 holds the key for more gains.
On the downside, there is a major bullish trend line formed on the 2-hours chart, which is providing support to buyers. Overall, on the downside, the $3.0 handle is a major support area, and on the upside, the $3.16 area is seen as a hurdle for more gains.
Looking at the indicators:
2-hours MACD – The MACD is in the bearish zone, but may change the slope if buyers step in.
2-hours RSI – The RSI is below the 50 level, which is a concern if buyers have to take the price higher.
Intraday Support Level (HitBTC) – $3.00
Intraday Resistance Level (HitBTC) – $3.16
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.