ForexMinute.com — The Bitcoin’s bullish trend is bringing no good news for Litecoin as the price is declining sharping from the last few hours. The fall has appeared after Litecoin’s consecutive failure to break range resistance. There might also be a possibility of a strong volume shift from Litecoin to Bitcoin markets, considering the latter is offering enough trading opportunities with its upside momentum.
As for us, we have lately drawn a quick profit off our short trade towards downside target. The price action meanwhile is taking place within the same range we discussed in our previous analysis, with 3.146 fiat serving as in-term resistance and 3.077 fiat as in-term support. As we now enter another day of trading, what are the levels we are keeping our eyes on? Let’s check out:
Litecoin 4H Chart
As you can see the 4H chart above, Litecoin is now awaiting a bounce back from current in-term support line, while hanging right around it. The scenario is pretty bearish and we can expect price to form lower lows towards our medium-term downside target near 3.060 fiat. We have already placed a short position beyond this target — towards 3.050 fiat — while keeping our stop loss near 3.088 fiat to get us out of the market in case of a bias reversal.
We would recommend traders to avoid placing any further shorts as market could attain a downward breakout scenario by then.
Looking the other way, a bounce back from support line would have us put a long trade towards 3.113 fiat, our immediate upside target. Once this level is broker, we will put a similar trade towards the in-term resistance line. We will excused ourselves from extending our long positions, considering the historical patterns.