During the past few days, Bitcoin has faced a strong upside resistance around 220, indicating the buyers’ hesitancy to enter the low valued market. For obvious reasons, the same market movements are getting noticed in Litecoin-USD charts where the price is moving sideways in the absence of mention-worthy trading volume.
As price continues to stay between its prevailing support/resistance levels, the market volatility has subsequently dropped (the congested Bollinger Band in the 1H chart below). The lower volatility further indicates the positions that seem unattractive to new and seasoned investors to enter the market. The aim here is indeed to bring the market a little down towards the prevailing support point (currently around 1.237). We can thus expect some downward action in the next few hours until the expected support level is tested.
[Update: At press time, the trend has already started facing south (indicates the last two red candles.]
The technical indicators are also not favoring any correction at this point of time. The MACD is visibly deviating away from the signal line to the downside, while the RSI is around 35, waiting to break below the selling point. If the currency downtrend persists, it is even looking forward to test the parity level around 1.00.
However, the 1.20ish area is also expected to be a strong bottom, keeping Litecoin from entering a drastic bearish bias towards the aforesaid parity level. Any chance of reversal there ensures a near-term bullish correction towards the 1.35-1.45 area. On a broader scale, the bearish bias will continue to dominate until the price remains below the 1.50 mark. In case it breaks above this threshold, we can find the next resistance around the 2.00-2.25 area.