ForexMinute.com — The Greek economical tragedy is not exactly a tragedy for the cryptocurrency sector, for each and every coin here is flaunting some really great bullish stunts. The Bitcoin’s volatile rally is reflected on almost all the leading cryptocurrency, but the most impacted is definitely Litecoin.
The silver cryptocurrency continues to trend upwards amid a strong buying pressure, still unable to establish a definite intraday high. We are now seeing some little weak corrections, but there is no sight of a downward rally — not as per this moment.
Despite the technicalities, the Litecoin market continues to be haven for day traders, for it is bring some really attractive trading opportunities amid such a volatility. We have therefore drawn out a few levels in today’s analysis, to explain you the ideal entry/exit positions to take the best possible profits. Here it is:
Litecoin 4H Chart
The 4H BTC-e chart above shows Litecoin in a strong bullish bias, even when there is an ongoing corrective phase. The price meanwhile is definitely trending a way too above its 50, 100 and 200H SMAs, and the 4RSI is still above 70 — a clear buying area. The MACD indicator is also inside a positive bias, indicating some further upside actions in next few hours.
It would therefore be feasible for Litecoin to establish an intraday peak before placing any long positions. We are still expecting 4.245 fiat to act as an in-term resistance level to hold the price from attempting further uptrend movements. At the same time, with bullish bias still strong, we expect 3.703 to act as the current in-term support line. A bearish correction would only be validated if price breaks below this level.
As we can see, a run towards 3.703 will first have to ditch 3.975 which is currently acting as a perfect temporary support. A break there and we would entering a short towards the in-term support line. We would still be keeping our stop loss point just around 4.000 to exit the market if the downside bias gets invalidated.
Contrarily, a bounce back from either of these downside targets would bring back the in-term resistance near 4.245 back in sight. We would however be placing out long positions only when price crosses above the said level, an action that would validate 4.500 as the psychological upside target — a safe bet. We would be still be keeping our stop loss near 4.216 to avoid being chopped in case the correction reappears.