What's up traders, I hope you've all had a successful trading week!
Here we are analyzing LTC/USD on the 4H chart.
As you all know, I have been keeping a very close eye on all the major market cap cryptocurrencies recently. Now we are back to Litecoin. Price has been trading in a relatively right consolidation zone since price rallied and peaked at 237 on the 15th February.
At present, price is trading at 205, whilst sitting on a side-wards support line. Price has been bullish since it left the major horizontal support zone at 184, but has since consolidated and in the short term, is showing signs of weakness. In light of this we have 2 things to consider. Can price support on the side-wards support line at 205? Or will it break and fall to the horizontal support level at 184? The way it looks now, the bias is the 184 support zone, but let's trade what we SEE and not what we THINK. If price reverses on the side-wards support level I would not hesitate to buy into Litecoin at all. If it breaks, I'll just wait for the retest at lower levels.
In the longer term, price will eventually carry on it's upside momentum, breaking out of the peak consolidation at 225. If price breaks above 225, then it has broken the consolidation range it is in, and this will confirm the horizontal support level or the side-wards support line are in play and the upside is then very likely to break out and hit the upside target of 250.
I am expecting Litecoin to hit 250 eventually. I think before we hit this level, Litecoin has some work to do with the structure I have mentioned above. Once these levels have been tested and proven, then we can look for a buy signal. We could have a small pullback after breaking the consolidation level at 225 which will then allow a safe entry into this trade. Once a retest of this level succeeds, I would expect Litecoin to be able to hit the target zone relatively uninterrupted.
Bare in mind, that I'm expecting more upside in the longer term regardless of how price behaves.
I will update this analysis when I receive above 40 likes.
Comment
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Litecoin managed to break below the side-wards support which was keeping the temporary uptrend intact. Due to this, I am now expecting a movement to the downside to hit the horizontal support zone at 194.
Once we are at this level, we can look for a new buy opportunity into this pair.
thanks