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Litecoin Price (LTC) Technicals Weak, Bitcoin Dragging Market Lower

  • Litecoin declined heavily after it failed to climb above $46.50 and $48.00 against the US Dollar.
  • The price seems to be sliding towards the $42.20 and $40.40 support levels.
  • There is a key declining channel forming with resistance near $45.50 on the hourly chart of the LTC/USD pair (data feed from Kraken).
  • Bitcoin price is down around 3% and it is struggling to stay above the $7,040 and $7,000 support levels.

Litecoin price is following a nasty downtrend below the $46.50 resistance against the US Dollar. LTC could revisit $40.40 or $40.00 before it starts a decent recovery.

Litecoin Price Analysis

In the past few days, litecoin price mostly followed a bearish path below the $50.00 pivot level against the US Dollar. LTC price broke a couple of key supports near $46.50 and the 100 hourly simple moving average to enter a bearish zone.

Later, the price made a couple of attempts to surpass the $46.50 resistance area, but it failed. As a result, there was another decline and the price traded below the $45.25 and $44.50 support levels.

The recent low was near $43.73 and the price is currently consolidating losses. An initial resistance is near the $44.40 level. Besides, the 23.6% Fib retracement level of the recent decline from the $46.19 high to $43.73 low is also near the $44.40 level.

If there is an upside correction above $44.40, litecoin price could correct further towards the $45.00 resistance. It represents the 50% Fib retracement level of the recent decline from the $46.19 high to $43.73 low.

The next key resistance is near the $45.60 level. Additionally, there is a key declining channel forming with resistance near $45.50 on the hourly chart of the LTC/USD pair.

Therefore, the price must break the $45.00 and $45.50 resistance levels. Having said that, the $46.50 level is still a major barrier for the bulls, above which the price is likely to start a strong rise.

Conversely, the price is likely to continue lower below the $43.75 and $43.50 levels. An immediate support is near the $42.20 level, but the current price action suggests that the price could even test $40.40 or $40.00.

Looking at the chart, litecoin price is clearly trading in a bearish zone below the $45.00, $45.50 and $46.50 resistance levels. Thus, the price is likely to continue lower until there is a daily close above the $46.50 resistance.

Technical indicators:

Hourly MACD – The MACD is slowly reducing its slope in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for LTC/USD is currently well below the 40 level.

Major Support Levels – $42.20 followed by $40.40.

Major Resistance Levels – $45.50 and $46.50.

The post Litecoin Price (LTC) Technicals Weak, Bitcoin Dragging Market Lower appeared first on NewsBTC.

NewsBTC , 2019-12-04 11:00:20 ,

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NewsBlock © 2019 - 2020 All rights reserved.

NewsBlock © 2019 - 2020. All rights reserved.

While Bitcoin’s price seemingly moves without rhyme or reason — collapsing by dozens of percent and embarking on face-melting rallies on a whim — the cryptocurrency market is filled to the brim with fractals.

Related Reading: Analyst: Bitcoin Price Likely to Fall to Low-$8,000s as Chart Remains Weak

A brief aside: A fractal, in the context of technical analysis and financial markets anyway, is when an asset’s price action is seen during a different time. This form of analysis isn’t that popular, but it has proven to be somewhat valuable in analyzing Bitcoin.

One recent fractal popularized by a well-known cryptocurrency trader is implying that BTC is going to return to the low-$7,000s in the coming days.

Bitcoin Fractal Implies Retracement to Low-$7,000s

A well-known crypto trader going by “Tyler Durden” on Twitter recently posted the chart below, which shows that a Bitcoin price fractal may be playing out. The fractal has four phases: horizontal consolidation marked by one fakeout, a surge above the consolidation phase, a distribution, then a strong drop to fresh lows.

If the fractal plays out in full, BTC could reach the low-$7,000s again, potentially as low as $7,100. This would represent a 20-odd percent collapse from the current price point of $8,800.

It isn’t only a fractal that is hinting Bitcoin has the potential to visit its lows. As we reported on Saturday, Bloomberg believes that if the GTI Vera Convergence Divergence Indicator flips red, a downtrend could push the cryptocurrency back to $7,300.

Related Reading: Stephen Colbert Pokes Fun at Bitcoin in Monologue: Mainstream Gone Wrong?

Can Bulls Step In?

But again, many believe it is irrational to have such bearish interpretations of the cryptocurrency’s chart at the moment. As reported by NewsBTC earlier, Popular crypto trader Mayne recently noted that the “people waiting for $6,000” are irrational. He quipped that Bitcoin retracing and consolidating after its fourth-biggest bull move in history ($7,300 to $10,500, a 42% gain) is perfectly par for the course, but noted that it’s totally possible we can go lower from $8,800.

The medium-term technicals support this.

Trader and CoinTelegraph contributor FilbFilb found that by the end of November or start of December, the 50-week and 100-week moving averages will see a “golden cross,” which he claims is far more significant” for the Bitcoin market that other technical crosses.

Also, a Bitcoin price model created using Facebook Prophet machine learning found that the leading cryptocurrency is likely to end the year at just over $12,000. What’s notable about this model is that it called the price drop to $8,000 months in advance, and forecasted a ~$7,500 price bottom for BTC.

To put a cherry on the cryptocurrency cake, Crypto Thies observed that when Bitcoin bottomed at $7,300, it bounced decisively off the 0.618 Fibonacci Retracement of the move from $3,000 to $14,000, which correlates with the two-week volume-weighted moving average. He added that summer 2019’s consolidation was marked by Bitcoin flipping major resistances into support levels, implying that a bullish reversal and subsequent continuation is likely possible in the coming weeks.

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Nick Chong , 2019-11-10 12:00:38

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