Litecoin price dropped today to $3.76, at the time of writing of this article, and it seems that the market will continue on printing lower lows again today at the end of the day’s trading session. In my opinion, Litecoin price is now emulating what is going on along the Bitcoin/Fiat charts.
Price Correction Evident On 1 Day Charts:
By examining the 1 day (LTC/USD) charts from Bitfinex (look at the below chart); plotting the 20,50 and 100 EMAs and executing a Fibonacci resistance fan along a trend line that extends between the low reached on the 29th of October ($2.79) and the high printed on the 4th of November ($5.38), we can notice the following:
- After scoring a high of $5.38 last Wednesday, litecoin price started a downside price correction wave that is now testing the 0.25 Fibonacci resistance fan level.
- It seems that the price will drop to test 0.25 Fib retracement level at around $3.4, before we can see it heading North again.
- The MACD is slightly above the zero level, yet the positive blue trend line and red negative trend line are converging and we can see the red line cross below the blue line soon, which reflects the market’s current selling power.
New Downside Trend Line On The 1 Hour Charts:
By analyzing the 1 hour (LTC/USD) charts from Bitfinex (look at the below chart), keeping the Fib retracement we plotted on the 1 day charts and plotting the 20, 50 and 100 EMAs, we can conclude the following:
- A new downside trend line has been formed (the red line on the below chart) on the 1 hour chart. I expect the price to rise briefly to touch the new trend line before falling again to test the 0.25 Fib retracement level.
- Litecoin price is currently testing the 0.25 Fib retracement fan level and will probably rise within the next few hours above this level before dropping again.
Conclusion:
Litecoin price dropping as Bitcoin price correction is also heading South. Levels as low as $3.40 are expected within the next 24 hours.
Charts from Bitfinex; hosted by Tradingview.com
