Litecoin Maintaining the Bullish Outlook

Litecoin Maintaining the Bullish Outlook

After a bullish divergence between price and the RSI in the 1H chart, litecoin found support during the June 1st session at 1.58 and rebounded.

Litecoin (LTCUSD) 1H Chart 6/3
litecoin 1h chart 6/3
(click to enlarge)

In the 1H chart we can see that price has rallied back above the earlier pivot of 1.68, but only barely. It needs to clear 1.70 during the 6/2 session with the 1H RSI above 60, in order to develop a convincing bullish reversal picture,. Then, we would still have resistance around 1.75, where ltcusd will likely be challenged by a falling trendline and the 200-hour SMA. Above that, we are likely to be in bullish continuation, especially if the 1H RSI is able to climb back above 70.

Litecoin (LTCUSD) 4H Chart 6/3
litecoin 4h chart 6/3
(click to enlarge)

In the 4H chart, we can see that price has retreated from the 1.90-1.94 highs. The 4H RSI showed a loss of the prevailing bullish momentum, and even suggests initiation of bearish momentum. Price has falling below the 50- and 100-period SMAs. Still, we can see that price is above a previous consolidation resistance at 1.50, and above the 200-period SMA. Therefore, the mode of this market is neutral-bullish.

From the perspective in the 4H chart, a break above 1.75 would confirm the bullish outlook from the bullish breakout a couple of weeks ago. Therefore, above 1.75, litecoin would likely test that 1.90-1.94 resistance with risk of breaking higher.

While the 1H and 4H charts look bullish to neutral, the daily chart still looks bearish to neutral because of the prevailing downtrend in 2014.

Litecoin (LTCUSD) Daily Chart 6/3
litecoin daily chart 6/3
(click to enlarge)

We can see that price is essentially in a range between 1.00 and 2.45 in 2015. A break above 1.95 would thus put pressure on the 2.45 resistance. A break above 2.45 would then complete a price bottom, with the 2015-high at 2.75 up to the 3.00 as the first target. If price can then hold above 2.00 after a subsequent pullback, we should see upside risk for more or less the second half of the year.

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Fan Yang has been a professional forex trader and analyst since 2007. He specializes in technical analysis and has a Chartered Market Technician designation since 2011. He was the chief technical strategist at CMSFX He was also the founder and chief currency strategist at FXTimes Over the years, Fan has not only been a trader and analyst but also an educator. As a proponent of both technical and fundamental analysis in trading, Fan advocates simplicity and discipline as key factors in making trading decisions when faced with so many "clues" and "signals". Currently Fan Yang is the chief currency analyst and webinar instructor at