ForexMinute.com — Since this past week, Litecoin was trending comfortably above the in-term and channel support, with minimal volatile fluctuations. Yesterday, it attempted a brief spike against the USD in the wake of low trading volumes in Bitcoin market. However, the spike was soon corrected when traders began to sell their trades at higher high, bringing market to a newer, and slightly lower, consolidation range. Let’s have a look:
Litecoin 4H Charts
The 4H BTC-e chart shows a downside momentum, in which Litecoin is testing the 50-, and 200-H SMAs as its pullback levels. Overall, the price is reflecting a medium-term bearish bias, where 4H RSI is clearly inside a selling region — between 50 and 40 — and the MACD blue curve has its head towards south.
Barring the recent volatile spike, in which Litecoin formed higher highs near 1.62, the price has been consolidating neatly in between 1.48 and and 1.42, the current channel resistance and support, respectively. We can therefore expect some repellence at these points once they are tested.
It brings us back to to the near-term levels that will definitely be tested in the next 24 hours. At this point, Litecoin is clearly attempting to break below the 1.43-1.44 area, so as to establish a longer bearish bias in the market. In case these levels are broken, the pressure would simply fall on the channel support, as stated above.
Conversely, staying above the 1.43 will at least ensure a small correction towards the in-term resistance near 1.45. An extended correction will bring back the primary upside risk in sight, near 1.47, ultimately establishing a medium-term bullish bias in the market. As we think, now is the good time to place the long trades towards 1.45.