Litecoin price dropped yesterday to record a low of around $1.78. The bearish wave coincided with yesterday’s bitcoin price drop. If the price fails to push up above $1.85, we can see litecoin price drop to even lower levels.
By studying the 1 hour Bitfinex (LTC/USD) charts from tradingview.com, plotting the 20 hour EMA and keeping the trend line we plotted throughout our yesterday’s analysis (look at the below chart), we can conclude the following:
- Litecoin price dropped below the 20 hour EMA just before the bearish wave took the price down to $1.78.
- The price has broken out of the uptrend that we spotted on the 18th of January and if it fails to rise to $1.85 during the next few hours, we can see much lower levels.
- Litecoin price has increased above the 20 hour EMA a couple of hours before writing this analysis, yet if failed to stay so.
By analyzing the 1 day Bitfinex (LTC/USD) charts from tradingview.com, plotting the RSI and drawing a Fibonacci retracement fan across a trend line that extends between the high reached on the 13th of November, 2014 ($4.36) and the low reached on the 14th of January, 2015 ($1.1), we can conclude the following:
- If litecoin price continues to drop, it will face support at around $1.66 that coincides with the 50% Fibonacci retracement fan level.
- The RSI value is around 47 now, so the price is neither oversold nor overbought, so we can see it move either way.
- Below the $1.66 support level, litecoin price will not face another support level except at $1.17 which coincides with the 62% Fibonacci retracement fan level.
Conclusion:
Litecoin price dropped steeply yesterday to record a low of $1.78. Our technical analysis can’t detect signs of discontinuation of this bearish wave during the next 6-12 hours.
Charts from Bitfinex