LTCUSD Price Technical Analysis for 16/12/2015 – Ready to Break Out?

LTCUSD Price Technical Analysis for 16/12/2015 - Ready to Break Out?

LTCUSD Price Key Highlights

  • LTCUSD price has consolidated inside a symmetrical triangle formation on its 1-hour time frame after forming lower highs and higher lows.
  • Price is approaching the peak of the triangle which means that a breakout is due anytime soon.

LTCUSD price could break out in any direction with today’s top-tier market catalyst, setting the cryptocurrency off in a sustained trend.

Which Way to Go?

LTCUSD price might be due for a downside break if technical signals are on the right track. Stochastic is moving down, indicating that sellers are taking control of price action, while RSI is also heading south as well. The 100 SMA is below the longer-term 200 SMA so the path of least resistance is to the downside.

In that case, LTCUSD price could fall until the next potential support at the 3.400 level or much lower if a long red candle closes below the triangle support at 3.650. On the other hand, a strong bounce off this area could lead to another test of the triangle resistance at 3.800 or perhaps an upside breakout.

For now, the moving averages are holding as dynamic support zones, keeping losses in check while market watchers wait for more clues. The upcoming FOMC statement could provide enough volatility for a break in either direction, as the Fed is expected to make a huge announcement.

An interest rate hike could be bullish for the dollar, taking LTCUSD for a downside move. Still, cautious remarks from FOMC policymakers reminding markets that they will proceed with their tightening at a very gradual pace could pave the way for a break to the upside and a resulting uptrend.

Intraday support level – 3.650

Intraday resistance level – 3.800

Charts from Bitfinex, courtesy of TradingView

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Samuel Rae is an active retail trader across a variety of assets, including currencies, stocks and commodities and the author of Diary of a Currency Trader (Harriman House). His personal strategy focuses primarily on classical technical charting patterns with a fundamentally supportive bias, combined with a strict, risk management-driven approach to entries and exits. He is an Economics graduate from Manchester University, UK.