ForexMinute.com — Despite the recent correction, Litecoin market is avoiding to offer any good trading opportunities, thanks to the absence of enough volume in last 24 hours. A part of this weakness could also be blamed on Bitcoin, which seem to have attracted a lot of traders due to its relatively high trading volume — meaning better short and long opportunities. The silver cryptocurrency is therefore trending sideways, and has no excitement to offer as of now. Let’s elaborate it further:
Litecoin 4H Chart
The 4H BTC-e chart displays Litecoin in a weak upside bias. The price is definitely trending below the 50- and 100-H SMAs, while the RSI is moving horizontal between 40 and 50 — a clear selling area. The MACD blue curve, despite its edge over the saffron signal curve, is currently inside a negative territory. The technical indicators overall intensifies a medium-term bearish bias in the market.
At this point of time, we will need to focus mostly on the downside levels, for a weak volume might soon result into a breakout. In case it happens, Litecoin would run towards the neckline near 1.689, while keeping its initial target towards the range support near 1.611 fiat. A break below this level would validate the primary downside target near 1.562 fiat. Placing your shorts towards this level might generate some profitable trades for you; however, do not forget to place your stop loss near 1.640 in case of bias reversal.
Conversely, if the volatility arrives from the bulls’ side, Litecoin might attempt a run towards the range resistance near 1.722 fiat. A break above this level would simply validate 1.815 as the primary upside target, thereby opening some long opportunities as well. In case you are planning to play this trade, we would recommend to keep your stop loss near 1.689 — the neckline — to ensure a timely exit from the Litecoin market.