Litecoin (LTCUSD) 4H Chart 3/6 (click to enlarge)
Litecoin started the week with a breakout above a narrow consolidation between roughly 1.80 and 1.90. However, after tagging 2.00, it started to retreat as we can see in the 4H chart.
Today, after LTCUSD retreated to just under 1.90, it found buyers. In the 4H chart, we can see that it bounced off a the previous mini-range resistance, as well as the 50-period SMA. This shows that bulls are still in charge. Also, the 4H RSI held above 40, which shows maintenance of the prevailing bullish momentum. If the bulls are indeed in control of this market, there is upside not only back to 2.00, but also towards the 2.44 high and the 2.75 high on the year.
However, if price falls below 1.83, it will clear the rising trendline from mid-January. If the RSI also falls below 40 and even better, tags 30, we should be looking for a bearish outlook first towards the February low around 1.68-1.70, then the 1.10 low on the year.
Litecoin 1H Chart 3/6
(click to enlarge)
In the 1H chart, we can see that litecoin has lost its bullish momentum in the near-term as the 1H RSI pushed below 40. However, we did see price bounce off of the 200-hour SMA and is now back above the 100-, and 50-hour SMAs. This shows return of bullish bias. If seems that if price can continues and break the current high at 1.96, it would also clear a falling channel resistance and liberate litecoin from consolidation and into bullish continuation. In this scenario, there is upside risk towards 2.44 and 2.75.
In the 1H chart, we can see that even a break below 1.88 might cause bulls to lose faith. It would complete a rounded top, and break below the 200-hour SMA. This would be a bit premature in signaling a bearish outlook, but it would be very damaging to the bullish outlook.
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