Much akin to its more valuable counterpart, litecoin has lost value throughout Wednesday’s trading, giving away much of Tuesday’s gains. The LTCUSD broke through the upper trendline of a weak, medium term channel midday Tuesday, and picked up strength throughout the whole day to top out at 21.035, a six week high for the silver-esque cryptocurrency. The level proved solid resistance, as heading into the European opening session the LTCUSD dropped just shy of 20%, falling back through the aforementioned channel resistance and finding support at March 12-March 16 resistance.
The resistance, approximately 17.408, will be the level to watch for insight into the short to medium term direction in the pair. Disregarding the size of Tuesday’s rise, the current action can be considered a simple retest of resistance. Therefore, a close below would suggest a bearish bias, with an initial target at channel resistance just shy of 17.204. Beyond that, look for towards previous support at 15.990.
Conversely, if the current level holds, look for a push towards March 3 highs at 18.705. A break above this level would bring 19.786 into play as a potential target, and beyond that, Tuesday highs at 21.103.**relatedarticle**
Looking longer term, and in a not dissimilar fashion to BTCUSD, the LTCUSD has formed something of a descending triangle during the last six months, however in contrast to the BTCUSD, the pair has broken the upper trendline of the pattern, invalidating the triangle and suggesting a bullish medium term bias. In addition, and further supporting the bullish bias, reversal point from which price broke the triangle was at the pair’s 200-day moving average.
All said, the medium to long-term direction of the LTCUSD will likely be dictated by that of the BTCUSD, with the strength of the former rising and falling in line with the latter. However, there will undoubtedly be some short-term discrepancies in the movement of the two of which traders can take advantage. The current bullish bias in the LTCUSD and bearish bias in the BTCUSD is one example of such a discrepancy.
To contact the reporter of this story: Samuel Rae at email@example.com