Litecoin has a negative medium-term outlook and bearish short-term trading according to the analysis that we have in our Litecoin news today. The four-hour time frame shows that the bearish head and shoulders pattern is invalidated and the daily time frame shows that the bulls have to rally towards the $85 level to secure the pair’s medium-term prospect.
Litecoin received a much-needed reprieve on the market last week when the entire market saved the LTC/USD pair from an even worse decline below the $50.00 level. The recent action in price in the LTC/USD pair has found resistance from the $60.00 level which coincides with the Litecoin’s 50-day moving average. The movement last week helped to start the negative-medium term for the altcoin and also initiated a bearish head and shoulders pattern on the four-hour time frame which was aiming to sink the cryptocurrency towards the $36.00 level.
The invalidation target of the bearish pattern was located around the $60.00 level which is another reason why the recent rally stalled around this region. The short-term technical analysis is showing us that the LTC/USD pair can advance towards the $70.00 and the $75.00 region if the price holds above the $60.00 level. Also, the four-hour time frame shows that the LTC/USD pair is technically bullish in the short term for the first time since 21st September. The bulls have to defend the $55.00 level in order to keep up with the dynamic in play.
The negative medium-term shows that the path ahead is a lot more difficult for the pair. The buyers will have to rally the pair towards the $85.00 level to change the negative medium-term bias that surrounds the cryptocurrency. This means that another rally of about 40 percent is needed and the lack of bullish patterns is also indicating that this may prove very difficult without a fundamental catalyst.
According to the latest sentiment data, the short-term sentiment for Litecoin is quite bearish at about 19 percent while the overall long-term sentiment is also negative at about 22.00 percent. The key resistance for the LTC/USD pair is now located at around $70.00 and the traders should know that the $85 resistance is right where the LTC/USD pair’s 200-day moving average is located.
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