Litecoin Hits Important Milestone Despite Bearish Trading Bias

Litecoin hits important milestones despite the bearish short-term and medium-term trading bias according to the four-hour time frame which also shows an inverted bullish head and shoulders pattern forming so let’s check on the Litecoin news and see more about the price movements.

The daily time frame shows a bullish falling wedge pattern forming while LTC is consolidating around the $40.00 level as it tries to recover from the ten-month trading low. The LTC/USD pair is trading down by 14 percent since the start of December but the cryptocurrency is still trading in the green around 25 percent since the start of the year while Litecoin hits important new milestone. The technical analysis suggests that if the LTC/USD pair could stage a major upside rally, the bulls will start gaining traction above the $45.00 to $50.00 technical region.

The four-hour time frame shows an inverted head and shoulders pattern in the making and the bulls have to rally the pair towards the $45.00 level to help form a reversal pattern. The size of the pattern suggests that the LTC/USD pair could reach the $70.00 position if the bulls gain traction above the $45.00 level. If we take a look at the daily time frame, the falling wedge pattern will be present which also shows that the pair could soon break to the upside.

The top of the wedge pattern is located around the $50.00 level and it outlines that $78.00 level as the next possible target of the bullish breakout in the short term. The traders should also be aware that if they don’t manage to defend the $36.00 level, this could lead to an even deeper decline to the bottom of the falling wedge pattern on the daily time frames near to the $33.00 level. Overall, the traders could wait for further technical confirmation before starting an LTC/USD purchase position. The rally towards $50.00 level could confirm that a price floor is in place.

The four-hour time frame shows that a key technical resistance is located at the $45.00 and the $50.00 levels. The key technical resistance in the medium-term is located at $70.00 and $78.00 levels. A four-hour time frame shows that the LTC/USD pair has a strong long-term technical support close to the $38.00 and $36.00 levels. Getting back from the current levels and sustained weakness under the $33.00 level will leave the pair to further losses.