ForexMinute.com — While Bitcoin is feeling sucked inside a strict trading parameter, Litecoin is rocketing ahead of it. The silver cryptocurrency, in last 24 hours, has surged around 14% amid a very strong buying pressure. The resistance is definitely futile for today, but we’ll still be keeping eye on important downside levels as the correction is equally inevitable after such a massive rally. Let’s look at the chart first:
Litecoin 4H Chart
The 4H BTC-e chart above displays Litecoin in an unimaginably strong bullish bias, for the price is definitely a way too above than its 50, 100 and 200 SMA and the RSI has stocked inside an overbought region, above 70 from the last few hours. The MACD indicator is also trending inside a positive bias, while staying above its signal curve. The technical indicators jointly indicate a strong buying pressure in the market, awaiting strong corrections.
Which brings us to the levels we’ll be watching before deciding on our positions. The massive upside momentum has indeed put us in a position where we can’t look any specific intraday peak. We will therefore be avoiding to play any long shots today, but will keep our focus highly on the downside targets.
Saying so, we will be entering a short position towards 7.013 as we expect a weak correction at this point of time. We will definitely be placing our stop loss near 7.374 to avoid being run down in case of a bounce back. Nevertheless, our actually target will continue to be the in-term support line near 6.200 fiat, which will be validated once the price breaks below the 6.724 mark. Our stop loss in this case will remain to be near 7.000.