Litecoin (LTCUSD) 4H Chart 3/11 click to enlarge
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.
Litecoin (LTCUSD) 1H Chart 3/11
(click to enlarge)
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.
Previous Post by Author: Bitcoin – 1H Diamond Pattern Suggests Short-term Correction