Litecoin, much like bitcoin has been sliding steadily since a couple of weeks ago. Also, both cryptocurrencies saw a 3-point bullish divergence between price and the RSI (price made 3 lower lows as the RSI made 3 higher lows).
Litecoin (LTCUSD) 1H Chart April 16
(click to enlarge)
In the 1H chart, we can see that after making a low at 1.32, price rebounded to about 1.42. Then, there was a bearish attempt which failed to push lower. Instead price held mostly above 1.35 and is now coming back up to 1.40 again. This basically shows a consolidation against the prevailing downtrend and price is poised to threaten the 1.42 high. Now, above 1.42, we will likely see sellers around 1.45 again. This is the support pivot from a previous consolidation.
We should respect the 1.45 level as resistance especially if the RSI tags 70, and shows a bearish divergence. This is because the prevailing trend is still bearish in the medium-term. An overbought market in the short-term in the context of a downtrend should attract sellers for the near to short-term, which means the pressure should be back towards the 1.32-1.35 support area.
Now, a break above 1.45 opens up the 1.49-1.50 support/resistance pivot area.
Litecoin (LTCUSD) 4H Chart April 16
(click to enlarge)
Looking at the 4H litecoin chart, we can see that 1.49/50 area. Also note that here, a rally would be challenged by a falling speedline and the 50-period SMA. If price stalls here and the 4H RSI stalls around 60, we should expect a bearish continuation attempt, or at least a short-term bearish attempt within a larger consolidation pattern. Basically, we should juggle between the bearish continuation outlook with the bearish-neutral and consolidation outlook.
Now, a break above 1.50, with the RSI above 60, would signal further bullish correction and a possible reversal in the short to medium-term, which would put the 1.72 level in sight. 1.70-1.72 is a previous support/resistance area, and should be respected if the trend is still bearish, or bearish-neutral. Above 1.72, we should be aware of a possible reversal that would put the 2.00 psychological level in sight.
