LTCUSDT Bullish and bearish levels to watch

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For this particular analysis on LITECOIN we are using the LTCUSDT symbol on the Phemex exchange.
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The idea is on the 1D time-frame where Litecoin (LTCUSD) has been trading within a long-term Channel Down since the May 10 2021 High. On May 12 2022, the price hit the bottom (Lower Lows trend-line) of this Channel Down for the first time since June 22 2021, and rebounded. Let's see under what conditions this rebound can be sustainable or not.

First of all, as long as the price trades below the 1D MA50 (blue trend-line) is bearish short-term and below the 1D MA200 (orange trend-line) bearish long-term. However on May 23 2021, when the price rebounded above the 0.236 Fib, it reached as High as the 0.5 Fib where it failed. On the other hand when it broke above the 0.5 Fib on August 12 2021, the rise extended as high as the top (Lower Highs trend-line) of the Channel Down. As a result, we can claim that only a break above the 0.5 Fib can give a longer-term rise.

On the more short-term, if the price breaks above the 0.236 Fib, it is more likely to post a 0.618 Fib rally, as this happened two times (Jan 22 2022 and Feb 24 2022 where 0.236 was the Support), against the one failed break-out on June 29 2021.

The bearish levels to watch is of course the bottom of the Channel Down. A 1D candle close below it, will most likely open the way to the lower Fibs of -0.236 and -0.382 within a 2 month time-frame.


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