Litecoin

LTCUSD Technical Analysis for 04/19/2018 – Another Shot at a Bullish Correction

LTCUSD recently completed a break-and-retest of an area of interest and is showing a similar bullish opportunity. On the 1-hour time frame, price is trading above an ascending trend line connecting the lows for the past few days.

Price broke past the resistance around $140 and stalled to show a correction from the $142.80 level. Applying the Fibonacci retracement level on the latest swing low and high shows that the 61.8% level lines up with the rising trend line and former resistance.

If the $137.50 area keeps losses in check, LTCUSD could resume the climb to the swing high or higher. The 100 SMA is above the longer-term 200 SMA to confirm that the path of least resistance is to the upside or that the uptrend is more likely to continue than reverse.

Stochastic is indicating overbought conditions for now to signal that bulls are feeling exhausted and could let sellers take over. Similarly, RSI is starting to turn south to signal that bearish pressure is returning and could keep the correction going for a while. Stronger selling momentum could lead to a break of the nearby support and a test of the inflection points at the moving averages.

Bulls appear to be reestablishing their positions in cryptocurrencies now that the tax filing deadline has passed. Recall that sentiment in the industry has considerably improved after it was reported that big hedge fund families are looking to place bets in the space. To add to that, there have been several developments rolled out in the past few days, including the acquisition of Earn.com by Coinbase.

The dollar has drawn some support from higher US bond yields, though, especially since Fed officials have been highlighting positive developments in the economy. Data has been mixed but there have been some upside surprises in medium-tier reports enough to keep optimism in play.

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