Litecoin (LTCUSD) 1H Chart 3/24; click to enlarge
The bearish swing from last week is still keeping pressure on the price action in litecoin. After tagging 1.60, ltcusd has been consolidating but has been unable to push above 1.82 several times. After the 3/23 Monday session, we saw the market give up again and retreat. As we get into the 3/24 session, price action has returned to a bearish bias with price under the 200-, 100-, and 50-hour simple moving averages. The RSI is breaking below 40, which reflects loss of any bullish momentum established during the current short-term consolidation.
The pressure is now back on the 1.70 low to the 1.60 spike-low.
Bearish-Neutral since January: When we look at the price action sin January’s and 2015’s low of 1.10, we can see that the market has essentially turned from bearish to sideways. There is no bullish outlook in the 4H chart. In fact, with price below the cluster of 200-, 100-, and 50-period SMAs in the 4H chart and the 4H RSI having tagged 20, we are looking at more emphasis on the bearish component of this medium-term bearish-neutral market.
If litecoin does indeed fail to break 1.82 this week and starts chewing its way down to 1.60, it would have downside risk towards the 1.10 low in the upcoming weeks. Then as the cryptocurrency approaches 1.10 and the parity level (1.0) maybe we can start to look for support again.
If price holds above 1.60 and pushes above 1.82, then the current consolidation continues, but the bullish outlook would be limited to the 2.00 psychological handle first. LTCUSD would have to break above 2.00 to liberate itself from the current bearish bias and open up the 2.44 highs from January, as well as the 2.76 high on the year.
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