LTCUSD is still safely inside its ascending channel pattern on the 4-hour time frame after having bounced off support. The channel bottom lines up with the moving averages’ dynamic inflection points, which helped keep losses in check.
Price seems to be aiming for fresh highs from here and the Fibonacci extension tool shows the next upside targets. LTCUSD is already testing the 50% extension but might have room to climb to the 61.8% extension near the swing high and the top of the channel
The 100 SMA is crossing above the longer-term 200 SMA to signal that the path of least resistance is to the upside, which basically means that the uptrend is more likely to continue than to reverse. Stronger buying pressure could even take it up to the 76.4% extension near $70 or the full extension close to $74.
Stochastic is turning lower, though, so sellers are in control of LTCUSD price action. RSI appears to be on the move up but could also be moving sideways to indicate consolidation.
Dollar traders are cautiously waiting for updates on tax reform as the House is scheduled to vote on their version of the bill before the end of the week. Any delay could remind traders of the headwinds facing tax cuts, which might then be negative for US bond yields, stocks, and the currency.
Meanwhile, cryptocurrencies like bitcoin and litecoin are starting to get back on their feet after selling off on the suspension of the bitcoin hard fork. Rival versions such as bitcoin cash and bitcoin gold are still floating around and could pose competition from older digital assets.
In any case, any more trouble brewing for bitcoin could wind up being positive for LTCUSD which is still one of its strongest competitors. Litecoin is the fifth most capitalized cryptocurrency at $3.46 billion. It has a total supply of 53.84 million units, according to CoinMarketCap.