ForexMinute.com — With Greece’s theatrical show coming to an end on a happy note, Bitcoin’s demand has lately seen a drop, the impact of which can also be seen on its closest counterpart Litecoin. The silver cryptocurrency, in last 4 hours, has dropped by 11% but is still maintaining to sail above the key support level we mentioned in our previous analysis. As we enter another day of trading, Litecoin has already attempted to establish an upside breakout, but has failed by a strong in-term resistance line.
In today’s analysis, we will be checking these levels to strategize our intraday trading positions. Let’s have a look:
Litecoin 4H Chart
The 4H BTC-e chart above displays Litecoin in a rather stronger bearish bias, for the price has clearly dropped below its 50H SMA curve. In the meantime, the RSI has come down to bounce between 40 and 47 — clearly a selling range. The MACD indicator has also dipped inside the negative bias. All these indicators are jointly pointing towards a notable selling pressure in the Litecoin market.
But the way we see, the price is still opening some decent profit-making opportunities thanks to the volatility. Litecoin is currently in midst of an in-term resistance and support line near 5.260 and 4.014. It has briefly validated 3.719 as the primary downside target but has failed to establish 6.200 fiat as its upside one.
Indeed, our first trade of the day will be a short entry towards the in-term support line near 5.260, out of which we will be hoping to take out a decent profit, with our stop placed somewhere around 5.032 fiat. A break below this level would make us place a similar position towards 3.719 fiat. This time, we will be placing our stop loss near 4.194 to exit the market in case of a bounce back. We will avoid to place any further trade to the downside, as the price action could turn volatile.
On the upside, we would be entering a long from near the in-term support area towards the temporary resistance line near 4.561 fiat. Our stop loss will be placed below 4.014 to avoid being chopped in case the negative bias extends. A break above the temp resistance level will meanwhile put our long towards the in-term resistance near 5.260. Here the stop loss will be around 4.561 fiat.