Litecoin rallied this week, and barely broke above last week’s consolidation resistance at 1.46. It stalled at 1.48 and as been drifting lower during the April 23 session. As we begin the April 24 session, it will be decision time for the market whether to continue the bullish correction, or return the bearish trend.
As we can see in the 1H chart, the market is still bullish in the very short-term.
1) Price is for the most part holding above the 50-hour simple moving average (SMA), and has stayed above the 100- and 200-hour SMAs.
2) The bearish price action has been tight and quiet, indicating that bears are not in control of the near-term market.
3) The RSI is still above 40, which means the prevailing bullish momentum is still in play.
So, if the current bias and momentum holds, pressure will remain on the 1.48-1.50 area, above which, ltcusd could be liberated into the bullish scenario. However, if price falls below 1.40, litecoin would clear below a rising trendline, and the cluster of 200-, 100-, and 50-hour SMAs. If the RSI also falls below 40, the market would be back in a bearish mode, with pressure towards the 1.32 low, and with the 1.00 low in sight.
The 4H chart shows a market that has been bearish and has lost its stride since mid-April (last week), but by no means has turned bullish. It is decision time indeed as ltcusd trades at the crossroad.
So what will it be? A break above 1.50 to take ltcusd out of the bearish outlook? This would open up 1.60 and possibly higher. Or will the bulls give up and allow price to fall back below 1.40 and back into the prevailing trend? I would lean on the bearish outlook simply because the prevailing trend is bearish and because this week’s bullish attempt has so far been tentative.
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