ForexMinute.com — It has been four days and Litecoin is still trending inside a narrow consolidation channel, claiming no definite bias to pursue as of now. A part of this sluggishness has been brought up by Bitcoin, which itself is looking very calm in the USD markets. Litecoin, by reason of its habit to follow Bitcoin’s price actions, is therefore looking stable — very stable. Let’s have a look:
Litecoin 4H Chart
The 4H BTC-e chart above clearly displays a bias conflict in the market, where Litecoin is unable to break above/below any levels amid low trading volume. The Bollinger Bands, narrowed as ever, further signify a congestion scenario in the market, the result of which could be a strong breakout — like we have seen many times in past.
The pressure therefore is more on bulls to keep the market from falling into a near-term bearish channel. As you can see the chart above, Litecoin is clearing teasing the oversold threshold curve near 1.450 fiat for now, above which it can still maintain the possibility of a bullish bias. A break below this level would simply bring the channel support near 1.422 in sight, putting further pressure on the current bottom, 1.366 fiat. There can however be some upside corrections near the channel support, for it will open some really good buying opportunities for traders.
Conversely, if Litecoin manages to find solid grounds above the oversold threshold curve, it would simply test 1.458 as its in-term resistance. A break above this level would simply bring 1.490 back in sight.