- Litecoin price slowly moved higher Intraday and traded a few points higher to keep sellers in check.
- However, yesterday’s highlighted critical bearish trend line on the hourly chart with a data feed from HitBTC is still in play and acting as resistance.
- There is a contracting triangle forming on the 30-min chart via the data feed from Bitfinex, which may act as a catalyst for a break in the short term.
Litecoin price slowly grinded higher during the past couple of sessions, and currently forming a breakout pattern for the next move.
Litecoin price managed to gain a few bids Intraday as buyers stepped in to prevent any further losses. However, it is hard to say that the bearish pressure is over in the short term. There is a contracting triangle pattern formed on the 30-min chart via the data feed from Bitfinex. The bullish trend line highlighted in yesterday’s post played well and helped the price to move higher. The price is now above the 100 simple moving average (30M chart), which is a positive sign.
The price is currently finding sellers near the triangle resistance trend line, which is also coinciding with the $3.50 pivot area. If the price continues to move lower from the current levels, then it may find support near the 100 MA (30M chart), which is positioned around the 38.2% Fib retracement level of the last wave from the $3.42 low to $3.51 high. A break below the triangle support area may negate the short-term bullish bias, and might increase the bearish pressure. On the other hand, if buyers manage to clear the triangle resistance area, then we can witness a test of the critical $3.55-60 resistance area.
We need not forget the significance of $3.55-60, as mentioned in yesterday’s post. There is a crucial bearish trend line on the hourly chart with the data feed from HitBTC, which is acting as a barrier for buyers. Moreover, the 38.2% Fib retracement level of the last drop from the $3.79 high to $3.46 low is also aligned with the same trendline to increase the value of $3.55-60.
Currently, the price is just below the 100 simple moving average (H1), and it would be interesting to see whether buyers can take the price above it or not. A break above the 100 MA may push the price towards the highlighted trendline and resistance area. We can look for a short term buy looking at the lower timeframe chart like 30-min, but when we look at the hourly chart, it is clear that there are a lot many hurdles for buyers on the way up. Although, the technical indicators like hourly MACD and RSI are positioned in the bullish zone.
Looking at the indicators:
Hourly MACD – The MACD is in the bullish zone, which is a positive sign and may encourage buyers.
Hourly RSI – The RSI successfully closed above the 50 level, which is another bullish sign.
Intraday Support Level – $3.48
Intraday Resistance Level – $3.55
Charts from Bitfinex and HitBTC; hosted by Trading View