ForexMinute.com — Bitcoin continued to prove itself a one-and-only locomotive that drives Litecoin’s value. In over the last 24 hours, the silver cryptocurrency dipped about 9-10% without displaying any civil war. The reason of this fall, however, had more to do with Bitcoin, which itself faced a flash crash after one of its key Bitcoin exchanges entertained massive selling orders.
With that said, the range we had discussed in our previous analysis stood pointless in front of manipulative sell-offs. Our stops however made us exit the market on time — without incurring heavy losses. In today’s intraday breakout analysis, we would be discussing the new revised range and the levels we’ll be watching out. Let’s have a look:
Litecoin 4H Chart
The 4H BTC-e chart above current indicates price in a new range, with 3.431 fiat serving as the in-term support and 3.628 fiat as the in-term resistance level. The technical indicators, meanwhile, are pointing towards a huge selling pressure in the market, meaning our focus would be more towards the support line and the stop losses around it.
But at first, we will wait for Litecoin to continue its correction and break above the in-term resistance level. If it does so, we’ll put a long towards the immediate upside target near 3.777 with a stop near 3.605 fiat. This would ensure to get us out of the trade in case the upside momentum turns weak.
Looking at the other way around, a pullback would put our sights towards the in-term support level. A break below and we’ll put our short towards the medium-term downside target near 3.307 fiat. On this trade, our stop loss will be near 3.494 fiat.