Bitcoin started the week with a bullish breakout. (Bitcoin – Breakout Maintains Bullish Momentum). When we look at the 1H Litecoin chart, we can see that price is attacking the consolidation range that has been forming since the end of last week. Price is above the 100-, and 50-hour SMA, showing loss of some bearish bias, and the 1H RSI is about to tag 70, which would reflect initiation of bullish momentum in the near-term.
ltcusd looks poised to break above the 1.82 resistance with bullish momentum, which would open up the 1.95-2.00 area, which involves a previous support.
If we get a pullback, a bullish market should keep price above 1.75, the middle of the current consolidation minus the spike down to 1.60. The 1H RSI should also hold above 40 in the bullish scenario for this coming week.
Now, when we look at the 4H chart, we can see that the challenge against the bullish recovery will start around 1.90, where the cluster of 200-, 100-, and 50-period SMA resides. We should see how the market reacts here especially if the RSI reaches 60.
If price does fall from 190 and the 4H RSI holds above 60, litecoin would remain at the crossroad. But if price stays above 1.75 and the 1H RSI holds above 40, as mentioned above, then the bullish bias is still in play in the near-term. With bitcoin already breaking, we can favor the bullish scenario to play out in litecoin.
If price falls back below 1.75 however, the pressure will return towards 1.70, and the 1.60 low. There would also be risk of breaking below 1.60, which would open up the 1.10 low on the year marked in January.
Previous Post by Author: Bitcoin – Breakout Maintains Bullish Momentum