Litecoin is starting the week with a confirmation of a price bottom in the near-short-term. The 1H chart shows a consolidation last week between roughly 1.60 and 1.70. At the end of the week, ltcusd rallied above the range resistance and spiked up to 1.73 before stalling.
The bulls in this market is holding at the gate at the moment. But as we can see it did not retreat far and held mostly above 1.68. This essentially shows respect to last week’s broken range as support and thus signals a bullish outlook in this time-frame. Also note that price crossed above the cluster of 200-, 100-, and 50-hour SMAs, after which price tested the cluster and respected it as support. This is call a “bullish slingshot” another strong sign that this cryptocurrency’s price action is turning bullish.
Finally, in the 1H chart, we can see that the RSI tagged above 70 and held above 40 on the subsequent pullback. This shows maintenance of the bullish momentum in the 1H time-frame.
Let’s take a look at the 4H chart:
We can see that the breakout in the 1H chart is still within the context of a bearish market since the market retreated from above 2.0 down to 1.61. The RSI is still holding below 60, but barely. Price is also barely holding below the 100-period SMA. Even if price does cross above last week’s high and thus the 100-period SMA, there is still a resistance around 1.81, which is reinforced by a falling trendline and the 200-period SMA.
A break above 1.81 would be needed to liberate the cryptocurrency from its bearish mode into a bullish one, which first has the 2.00 handle in sight, before the 2.10-2.15 area.
Now if price fails to break above 1.73 and retreats below 1.67, we are very likely to see continuing pressure on 1.61. At that point, a break below 1.60 would open up the 1.10 low on the year.
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