LTCUSD Price Technical Analysis – Rising Wedge Forming!

0
47
http://www.forexminute.com/btcusd-price-technical-analysis-aiming-for-500/

LTCUSD Price Key Highlights

  • LTCUSD price has been trending slightly higher but it looks like buyers are losing steam.
  • A rising wedge formation can be seen materializing on the 4-hour time frame, with price just testing the resistance at 3.800.

LTCUSD price could make its way back to the bottom of the wedge formation near 3.400 since the resistance appears to have kept gains in check for now.

Moving Average Support

The bottom of the wedge pattern lines up with the 100 SMA, which has held as a dynamic support level in the past. Speaking of moving averages, the short-term SMA has recently crossed above the longer-term 200 SMA, which means that the path of least resistance level is to the upside.

This suggests that a bounce of the wedge support is likely or that an upside breakout might be in the cards. However, stochastic is pointing down, indicating that selling pressure might be building up. Similarly, RSI is on its way south so there may be a bit of bearish momentum in play.

http://www.forexminute.com/btcusd-price-technical-analysis-aiming-for-500/

The average directional index is cruising sideways below the 50.0 level so LTCUSD price might stay stuck inside its consolidation pattern for now. Note that a bearish divergence can be observed in both stochastic and RSI, as the oscillators made lower highs since the last week of November while price made higher highs.

With that, bears might take the opportunity to push price down the wedge support and trigger around 0.200 in losses, which is roughly the same height as the formation. An upside breakout could also yield gains of the same amount.

BTCUSD price is under some buying pressure for now, as the cryptocurrency is taking advantage of dollar weakness and breaking one resistance level after another. This could provide support for other cryptocurrencies such as litecoin as well.

Intraday support level – 3.400

Intraday resistance level – 3.800

Charts from Bitfinex, courtesy of TradingView

To contact the reporter of the story: Samuel Rae at samuel@forexminute.com

SHARE
Previous articleBTCUSD Price Technical Analysis – Aiming for $500?
Next articleDaily FX Trading Update: RBNZ Cuts Rates, AU Jobs Comes Strong – Dec 10, 2015
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.