After a spike down to 1.00 last week, litecoin has been drifting lower. The 1H chart shows the cryptocurrency “chewing up” the tail made by the spike.
Here are some observations on the 1H chart:
1) Price action and the 200-, 100-, and 50-hour simple moving averages reflect a persistent bearish market.
2) The RSI has been tagging below 30 and holding under 60, which reflects persistent bearish momentum. That is, until the April 15th session.
During the April 15th session, ltcusd found support at 1.32. It formed an intrasession double bottom and price rallied to start the global April 16th trading session. The 1H RSI has broken above 60, which reflects loss of the prevailing near-term bearish momentum. This development suggests its pullback time.
In the near-term, if the RSI pushes above 70 and price reaches the central mass of the previous consolidation range, which would be around 1.47, we should look out for resistance. If we do see resistance, and the RSI turns back below 70, get ready for a bearish continuation attempt. We should limit the current bullish outlook to a maximum of 1.50, IF we believe that litecoin is still bearish.
In the 4H chart, we can see that around 1.50, perhaps just a tad higher, there is a falling speedline from last week. We will also see the rally challenged by the 50-period SMA. Meanwhile, as the 1H RSI pushes above 70 and stalls, we should also monitor the 4H RSI to see if it will stall around 60. If this happens, the short to medium-term bearish momentum would still be in play and we can expect the bearish continuation attempt to pressure the current low at 1.37.
With the prevailing trend since 2014 still bearish, we should not consider the bullish outlook until price has pushed above 1.73. On the other hand, we should anticipate further decline towards the parity level. However, we should anticipate some choppiness if price does approach 1.00 because the last time here, we saw a violent reaction.
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