Litecoin (LTC) Price Analysis – Litecoin Forms New Bearish Pattern, Can A Counter-Reaction Occur?

Litecoin (LTC) Price Analysis – Litecoin Forms New Bearish Pattern, Can A Counter-Reaction Occur?

Since December 1, the value of Litecoin has substantially depreciated, losing almost 10% from its monthly opening price. As of now, LTC trades at $43.7 after dropping from a daily high of $44. Litecoin is currently the 6th best-performing cryptocurrency with a market cap of $2.7 billion which is quite low compared to when it was trading above $5 billion a few months back. We can see a price recovery as soon as buyers step back into the market.

Litecoin (LTC) Price Analysis: 2H Chart – Bearish

Key resistance levels: $45, $46, $47
Key support levels: $43, $42, $41

Litecoin is currently on a downward range, though the market has been trading below $45 for the past four days now. The recent price rejection at $44 is likely to cause a serious selling pressure in the market as $43 support may be explored soon. It may even get uglier if the LTC supplies below the descending wedge, reaching $42 and $41 support in no time.

LTCUSD, 2H Chart – December 13

Reclaiming $45 could be a bit tough for the buyers. But if they push through price to the upper boundary of the wedge, we can expect further buying at $46 and $47 resistance. Litecoin has shown a sign of small recovery in the technical indicators. A bullish move would confirm as soon as the MACD and RSI cross their immediate resistance. As of now, the downtrend remains significant on the 2-hours time frame.

Litecoin (LTC) Price Analysis: 30M Chart – Bearish

The 30-minutes chart for Litecoin shows that the market has continued to respect the white regression line drawn from December 9. Minutes ago, LTC got rejected again at the white line after a small correction to $44. Following the latest bearish formation, a possible sell is likely to $43 support, where the LTC is currently relying on.

LTCUSD, 30M Chart – December 13

A fresh weekly low could print at $42 if the current support dips. As revealed on the technical indicators, Litecoin is nearing towards the oversold region. If the buyers can counter the current bearish setup, the market could climb back to $44 with a potential break to $45 resistance. Notwithstanding, the bears are still gaining control of the market.

LITECOIN BUY SIGNAL
Buy Entry: $44.5
TP: $46
SL: $43

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Author : Michael Fasogbon

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Michael Fasogbon is a professional Forex trader and cryptocurrency technical analyst with over five years of trading experience. Years back, he became passionate about blockchain technology and cryptocurrency through his sister and has since been following the market wave.