Litecoin / USD Technical Analysis: Climbing The Pit

Litecoin / USD Short-term price analysis

 

Litecoin is bullish over the short-term, with buyers rallying the cryptocurrency to its highest trading level since September 2018.

The four-hour time frame shows that the latest surge has triggered a large inverted head and shoulders pattern, with a bullish pattern reaching its upside objective already.

Technical indicators on the four-hour time frame are moving higher and continue to signal further upside.

 

LTC / USD H4 Chart                                                                         (Source: TradingView)

 

Pattern Watch

Traders should note that the LTC / USD pair may be at risk of a near-term technical correction now that the bullish pattern on the four-hour time frame has reached its upside target.

Relative Strength Index

The Relative Strength Index is bullish on the four-hour time frame, although it has reached overbought territory.

MACD Indicator

The MACD indicator has turned bullish on the four-hour time frame and continues to generate a strong buy signal.


Litecoin / USD Medium-term price analysis

 

Litecoin remains bullish over the medium-term, with the cryptocurrency continuing to advance away from its key 200-day moving average.

The daily time frame shows that the latest advance in LTC / USD pair has created a large inverted head and shoulders pattern with a sizeable upside projection.

Technical indicators on the daily time frame are starting to appear somewhat overstretched.

 

LTC / USD Daily Chart                                                                         (Source: TradingView)

 

Pattern Watch

The upside objective of the bullish inverted head and shoulders pattern on the daily time frame would take the LTC / USD pair towards the June 10th, 2018 trading high.

Relative Strength Index

The Relative Strength indicator is bullish on the daily time frame, although it is showing slight bearish price divergence.

MACD Indicator

The MACD indicator is conflicting on the daily time frame, with the MACD signal line slightly overbought whilst the MACD histogram is lagging.


Conclusion

 

Litecoin has enjoyed a strong start to the month after a fairly lackluster period of price consolidation around the $60.00 level.

The emergence of the large inverted head and shoulders pattern on the daily time frame may trigger an even stronger rally above the $100.00 level over the medium-term.

A minor technical pullback may occur if bulls struggle to move price above neckline resistance on the daily time frame.

 

 

Credits: https://cryptobriefing.com

Leave a Reply

Your email address will not be published. Required fields are marked *