Litecoin (LTC) Attempts to Bounce, Offering a Buying Opportunity

Key Resistance Levels: $70, $60, $50
Key Support Levels: $50, $40, $30

LTC/USD Price Long-term Trend: Ranging
Recently, Litecoin is in a bearish market as it fell to a low of $42 and resumed consolidation above it. In retrospect, LTC broke the downtrend line and rally above $60. The uptrend was short-lived as the price was resisted at $65.

This plunges Litecoin to its present low at $42 but the  fluctuation continues above it since November. Litecoin is taking a breather as it consolidates above $42 price level. The coin may move up if the current level holds. A break below this level will deepen the coin to a low of $36.

Daily Chart Indicators Reading:
Litecoin has a bearish crossover as the 21-day SMA crosses below the 50-day SMA. This implies that the market is falling. The Relative Strength Index period 14 indicates that Litecoin is below the centerline 50. This means that the price is likely to continue falling.

LTC/USD Medium-term bias: Ranging
On the 4-hour chart, Litecoin is in a period of sideways movement between the levels of $42 and $50. Litecoin has been fluctuating within this range for the past two weeks. The bulls have attempted the resistance line to break it but were repelled. However, the bears made three attempts at the support line but were unsuccessful.

4-hour Chart Indicators Reading
The simple moving averages are trending horizontally indicating that the coin is fluctuating. The market is below 40% range of the stochastic indicator. It means that the price is in a bearish momentum. The breaking of either the support line or the resistance line is imminent. A break below the support line will deepen the coin to a low of $36. Similarly, a break above the resistance line will make the coin to rally above $66 price level.

General Outlook for LTC
Litecoin is presumed to have reversed after price breaks through the downtrend line. The bulls were unable to sustain the upward move as the coin nosedives to the present low. It is likely that the bears have exhausted the bearish run as the market consolidates above the $42 price level.

LTC Trade Signal
Instrument: LTCUSD
Order: Buy Limit
Entry price: $42
Stop: $35
Target: $66