Litecoin was unable to break above a consolidation that started at the end of last week after it marked a low around 1.60. It failed to push back above the 1.82 handle. Even though the 1H RSI suggested there was bullish momentum to start the week, this near-term bullish momentum was unable to extend bitcoin higher. Now, btcusd is trading under the 200-, 100-, and 50-hour SMAs, which are sloping down and almost in full bearish alignment (when the 50-hour is under the 100-hour, which is under the 200-hour SMAs).
The RSI did dip below 30, which reflects revival of the prevailing bearish momentum from last week. Price looks poised to test the 1.60 low now that it has broken below the 1.70 handle. Let’s monitor a pullback. If price approaches 1.75 and the 1H RSI approaches the 60 level, we should expect a bearish attempt if the market is indeed bearish. If price breaks above 1.75 and the RSI above 60, the direction in unclear again, and there would be pressure on the 1.82 resistance again.
Above 1.85, we would put the highs around 2.10 in sight. The 2.44 resistance pivot from January would also be in sight. A break above 2.45 would then open up the 2015 high around 2.75.
Let’s take a look at the 4H chart.
Looking at price action since January, we can see that price action is turning bearish again in March as ltcusd held below the 200-, 100-, and 50-period SMAs, while the RSI tagged below 20 and held below 60. These are signs of bearish bias and momentum.
To the downside, below 1.60, there might be some support/resistance factors around 1.40, but the bearish outlook also has the 1.10 low on the year in sight.
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