After making a low at 1.32 last week, litecoin has been in consolidation. The 1H chart shows the narrow consolidation range between 1.32 and 1.46.
Here are some observations from the 1H chart:
1) The market has been relatively quiet over the weekend, but after price met with the 200-hour simple moving average (SMA), there was a bearish reaction. This shows that bears are in control.
2) The RSI shows a market in consolidation. It is now heading to 30, which could be a sign that the market is reviving the bearish momentum. If the RSI tags 30, and holds under 60 on a subsequent rebound, then we can say that the bearish momentum is starting to stick.
3) After a relatively quiet weekend, volume is picking up at the start of the new week. This volume accompanies the bearish reaction.
The technical picture shows ltcusd poised to retest the 1.32 low early this coming week. Let’s take a look at the 4H chart.
Now, if price does not break below 1.32 this week, but returns above 1.46, we should see some short-term bullish outlook. However, because the prevailing trend is bearish, we should limit the bullish outlook. Let’s take the width of the range as a projection. 1.46 – 1.32 = 0.14. That means a break above 1.46 targets the 1.60 level, 0.14 above 1.46.
It just so happens that 1.60 is a previous support pivot. It is also near the 200-period SMA in the 4H chart. A break above 1.62 would clear the 200SMA and signal a bullish outlook, especially if the RSI pushes above 70.
However, if price remains below 1.50, and the 4H RSI holds under 60, we should still maintain a bearish outlook and anticipate that retest of 1.32. A break below 1.32 keeps the bearish trend with pressure towards the 1.00 level.
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