Litecoin Vs Bitcoin - Bearish Divergence

The price forms a bearish divergence at the resistance zone between 0.015000 and 0.016000 levels. It gives a trend reversal signal. The market made a good upward movement and it should be corrected. RSI is at the overbought zone telling us that the market has more chances to move lower than to continue the upward run. MACD lines are going to support a downward movement. DMI is bullish with the falling ADX line. All these signals tell us that the correction to MAs and an uptrend line - it will be a logical move in the market conditions which we have now.

For confirmation of the falling, the price will have to break the local uptrend line. The breakout signal can be used for opening short positions. If the price moves above 0.016000 level, it will confirm that bulls still have the power to push the market higher. But this breakout can't be used for trading as the market will be too far from proper entry levels. These entry levels are at SMA50, SMA100 and the uptrend line and long positions should be opened only based on confirmed reversal signals.