As the 3/10 session began litecoin got a jolt as it popped up from around 1.95 to about 2.14. This was the strongest 4H rally late January. In the 4H chart, we can see that price is extending a breakout last week from the 1.78-1.90 range.
Note that price tested the previous range resistance and confirmed it as support before the 3/10 rally. The latest push broke above the 2.00 handle as well as some common resistance around 2.03/2.04. After breaching these resistance levels with strong volume, bitcoin retreated.
in the 4H chart, look for support if price retreats to 1.94-95 area, which involves the 50-period SMA and a previous resistance pivot. Also, when the 4H RSI approaches 40, we should also look for a bullish continuation attempt.
The 1H chart also gives us a bullish continuation set up.
In the 1H chart we can see that price is still falling. We can also see that if price reaches 1.94, it will be testing the 200- and 100-hour SMAs, which reinforce the previous resistance area as a possible support now that the resistance was broken. We can also see that the current decline is in a choppy falling channel, or wedge. A break above 2.05 should clear this wedge and therefore would be a bullish continuation signal.
To the upside, there is still room towards a key resistance in late January around 2.44. Above that, the 2015-high at 2.72 will be in sight.
Now if price does fall below 1.90, our bullish outlook might be put on hold. We don’t necessary have a bearish outlook, but another rally should be limited. We then might start treating the 2.00 area as possible resistance again. For now, the bearish outlook appears to be just a corrective one, and the bullish short-term trend should resume.
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