LTC/USD Technical Analysis – March 20, 2014 Forecast

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LTC/USD Technical Analysis – March 20, 2014 Forecast

LTC/USD Technical Analysis – March 20, 2014 Forecast

Often regarded as living in the shadow of bitcoin, litecoin is starting to gain attention and, in turn, recognition, as more and more exchanges start trading the silver cryptocurrency. A host of news regarding the currency was released on Thursday, which could serve to negate the downside momentum spurred from Wednesday highs at 21.0965.

The LTCUSD is currently trading mid-range at the previous low of 16.2816, sandwiched between the upside and downside confines of a bearish channel. The level looks to be offering up a certain level of support at present, but whether the support will hold remains to be seen. If it breaks, look for an initial downside target of channel support around 15.7515.**relatedarticle**

The bullish fundamental attention surrounding litecoin on Thursday suggests this channel support will likely hold, initiating a rise back towards channel resistance, and perhaps an upside break. Leading the fundamental charge is the announcement that China’s busiest bitcoin exchange Huobi, had started trading litecoin from Wednesday evening. This adds to the credibility of the digital currency, and could serve up some short-term strength in the LTCUSD. Another announcement on Thursday reported that Swedish tech engineering company KnCMiner had sold $2M dollars of its litecoin mining equipment “The Titan”, hinting at resurgent demand for the currency.

These announcement may be enough to boost the LTCUSD towards range resistance around 16.6487, and perhaps even a break of this level. A close above it would validate the bullish bias, offering up an initial target of 17.2643, and beyond that, previous highs ay 18.6980.

All said, as we head into the weekend we may see some divergence in the value of litecoin and bitcoin, with the overarching sentiment negative in the bitcoin market and positive in the litecoin market. 

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

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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.