ForexMinute.com — The event forming inside Greece has created a ripple that is effecting the world’s economy in both good and bad ways. But by looking the condition of the cryptocurrency sector, the effects only seems to be good. Almost every leading cryptocurrency, in different ways, have reacted positively to the Greece’s debt crises. Litecoin is one among them.
After a rather disappointing week, the Litecoin value rallied throughout the weekend, something that put it in a comfortable bullish bias. At press time, the silver cryptocurrency is hinting to extend the prevailing uptrend, a price action that might form some more intraday peak levels. It meanwhile opens up some pretty attractive trading opportunities for day traders. Let’s check them out:
Litecoin 4H Chart
The 4H BTC-e chart above shows Litecoin in a very strong bullish bias, for the price is trending above the 50, 100 and 200H SMA and the RSI has toppled inside the overbought region, awaiting corrections. The MACD indicators meanwhile is also trending inside a positive bias, with signal curve still much low enough to maintain the overall upside bias.
The technical indicators are indeed hinting at an extended bull run, but we would still suggest readers to wait for Litecoin to establish a certain intraday high before placing any long-term trade. We are meanwhile watching price to retest 4.687 as its in-term support line, and 5.250 as a weak, yet a reasonable in-term resistance line.
A corrective attempt will indeed bring Litecoin towards the temporary support level near 4.935 fiat, a decent short position to bet on. A further breakdown and we’ll have the in-term support back in sight. We would however be placing our short position only when the price crossed below the 4.687 mark, a price action that will validate 4.403 as the primary downside target. Our stop loss here would be 4.800 to ensure a timely exit in case of a bias reversal.
Meanwhile, extending the current bullish mood looks volatile and doesn’t have any specific upside target to bet on. We will therefore be recommending to trade cautiously during an uptrend, keeping your eyes around the 5.250-mark to exit or enter a position. A break above this level would open up some really great long positions towards 5.40, a psychologically-induced upside target.