In the 1H Litecoin chart, we can see that the cryptocurrency rebounded last week from about 1.60 to 1.82. This sharp rally failed to extend beyond the 200-hour SMA and the 1H RSI failed to climb back above 70. This showed a lack of bullish momentum and maintenance of some bearish bias. Then ltcusd consolidated around 1.70 towards the end of the week, with a break below the 1.67 support over the weekend.
As we begin this week, we saw a rebound to the 1.67 level which held as resistance. Note that price is now holding under the cluster of 200-, 100-, and 50-hour simple moving averages (SMAs), showing revival of the bearish trend. Price action also looks poised to test the 1.60 support area.
Litecoin (LTCUSD) 4H Chart 3/30
(click to enlarge)
Looking at the 4H chart, we can see that the rally last week, held below a previous week’s consolidation resistance as well as under the 50-period SMA. Note that the RSI held under 60 after tagging below 30, showing maintenance of the bearish momentum. At this point, if there is a pullback, a market in bearish continuation should find resistance around the 1.70-1.72 area.
If price breaks below 1.60 this week, litecoin will have the 1.10 low on the year in sight. The daily chart also shows that the market is holding on to its prevailing downtrend as price trades below the 200-, 100-, and 50-day SMAs.
If price does not break below 1.10 and climbs back above 2.00, then we can start talking about a possible price bottom. For now, we should keep a bearish outlook. with the 1.10 down to the parity (1.00) level in sight.
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