Litecoin Falls To $82 After Forming A Bearish Double Top Pattern
The Litecoin (LTC) price has encountered resistance near the $100 level, resulting in bullish fatigue.
Long-term forecast of the Litecoin price: bearish
Buyers tried to test this resistance again on Feb. 1 and Feb. 7, but were rebuffed. At the recent high, price formed a bearish double top pattern signaling a decline. Although it rose above the 50-day line SMA, Litecoin fell below the 21-day line SMA. Selling pressure will increase on the downside until the price reaches a low above $80 or the 50-day line SMA. If the price falls below the moving average lines, the decline will continue. On the other hand, Litecoin will have to stay within a trading range if it wedges itself between the moving average lines. The price of the altcoin is currently fluctuating between the moving average lines.
Litecoin indicator analysis
The Relative Strength Index has dropped to the value of 48 for the period 14. It shows that Litecoin is in a bearish trend zone and could continue to decline. The altcoin could go sideways again as it is now trading between the moving average lines. Litecoin has strong momentum above the daily stochastic threshold of 25, and the increasing slope of the moving average lines indicates an uptrend.
Resistance levels: $140, $180, $220
Support levels: $100, $60, $20
What is the next step for Litecoin?
Litecoin is declining on the 4-hour chart, but is currently in an upward correction. If the recent high is rejected, selling pressure may resume. LTC price corrected upwards during the uptrend on February 9, and a retreating candlestick tested the 61.8% Fibonacci retracement line. After the correction, LTC will fall to the Fibonacci extension level of 1.618, or $82.70.
Disclaimer. This analysis and forecast are the personal opinions of the author and are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by CoinIdol. Readers should do their own research before investing in funds.
Source: Read Full Article