The Litecoin price has dropped around 0.5% against the USD in over the last 24 hours. After the surprising bullish rally in Bitcoin charts, the Litecoin as usually tailed the upsurge and eventually established new higher highs, one crossing above the presumed resistance level near 2.00. However, the market soon faced a little downside pressure as traders exited their positions for short-term profits. Nevertheless, the overall bullish bias continued to exist.
As you can clearly see in the 4H BTC-e chart above, the Litecoin price is clearly way too above the 50-H MA, while the RSI is at 65 — clearly a strong buying area. At the same time, the MACD blue curve, while staying in a positive territory, is looking towards converging below the saffron signal line. A majority of these indicators confirm the bullish bias in the Litecoin market.
We have also drawn a Fib retracement diagram between the previous higher high near 2.05 and the lower low around 1.88. The Litecoin price, currently near 1.99, is clearly targeting the 76.4% retracement level aligned with 2.01, with an upside risk towards 2.05. These two levels meanwhile has proven themselves to be an ideal stops to cover near-term gains and has just returned the upward rally back to bearish corrections.
However, a strong support level near 50% retracement level 1.96 is also turning out to be a good entry point for traders, while the a similar correction-slowing factor could be seen around the downside risk near 1.92 — also the previous lower low. From the look of it, the Litecoin price is in mood to set its foot near 1.96 to attempt a jump towards previous higher highs.
Conclusion
Setting your stop losses above 1.92 would ensure a timely exit in case the prevailing bullish bias invalidates.
