• Home
  • Live Data
  • Events
Home Trading Litecoin / USD Technical Analysis: Bearish Double Top

Shutterstock

Litecoin / USD Technical Analysis: Bearish Double Top

A short term bearish bias is weighing on the pair, though the overall trend remains bullish.

-

  • Litecoin remains bullish in the short-term while price trades above the pair’s 200-period moving average on the four-hour time frame
  • The four-hour time frame is showing a bearish double-top pattern weighing on the LTC / USD pair
  • The daily time frame shows that the recent rally has created an even larger bullish inverted head and shoulders pattern

Litecoin / USD Short-term price analysis

Litecoin remains bullish over the short-term, with price still trading above the LTC / USD pair’s 200-period moving average on the four-hour time frame.

The four-hour time frame is showing that buyers were unable to move price above the $100.00 level earlier this week, which has created a bearish double-top pattern formation.

Key technical support to the downside is currently located at the LTC / USD pair’s 200-period moving average, at $66.00, and the $61.50 level.

 

Litecoin H4 Chart April 12, powered by Trading ViewLTC / USD H4 Chart                                                                         (Source: TradingView)

 

Pattern Watch

Traders should note that double-top pattern formations are typically bearish reversals patterns.

Relative Strength Index

The Relative Strength Index has turned bearish on the four-hour time frame and is showing that selling pressure is increasing.

MACD Indicator

The MACD indicator has turned bearish, with the MACD signal line and the MACD histogram turning lower.


Litecoin / USD Medium-term price analysis

Litecoin remains bullish over the medium-term while trading above its trend-defining 200-day moving average, which is currently located at the $46.00 level.

The daily time frame shows an even larger inverted head and shoulders pattern has now formed, with price retracing back to the neckline of the smaller inverted head and shoulders pattern.

The smaller inverted head and shoulders pattern on the daily time frame has yet to reach its target of $120.00. The larger inverted head and shoulders pattern has a larger upside objective that would take the LTC / USD pair close to the $160.00 level.

 

Litecoin Daily Chart April 12, powered by Trading ViewLTC / USD Daily Chart                                                                         (Source: TradingView)

 

Pattern Watch

Traders should note that neckline support from the smaller inverted head and shoulders pattern on the daily time frame is located at the $62.00 level.

Relative Strength Index

The Relative Strength indicator is turning bearish on the daily time frame as selling pressures start to intensify.

MACD Indicator

The MACD indicator is also coming under pressure on the daily time frame and shows scope for further downside.


Conclusion

Litecoin is starting to come under downside pressure in the near-term as the bearish double-top pattern on the four-hour time frame increases technical selling.

Overall, the medium-term bullish bias surrounding the LTC / USD pair will remain intact while price trades above its 200-day moving average and the bullish patterns on the daily time frame remain valid.

For a quick look into the Litecoin project, check out our coin guide.

We also published a deep review of LTC and its investment grade here.

 

Litecoin Chart

Decentral Media, Inc., the publisher of Crypto Briefing, is not an investment advisor and does not offer or provide investment advice or other financial advice. Nothing on this website constitutes, or should be relied on as, investment advice or financial advice of any kind. Specifically, none of the information on this website constitutes, or should be relied on as, a suggestion, offer, or other solicitation to engage in, or refrain from engaging in, any purchase, sale, or any other any investment-related activity with respect to any transaction. You should never make an investment decision on an investment based solely on the information on our website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an investment.

DISCLOSURE

Authors at Crypto Briefing are invested in cryptocurrencies. The author of this post may be invested in digital assets mentioned here.

The Analyst Team
Crypto Briefing has become known for providing thoughtful and insightful diligence on early-stage blockchain ventures. Our reports are distributed globally, including via Binance Info. Almost 100 free, unpaid, and independent Digital Asset Reports and Evaluations and early-stage crypto assessments are available by clicking on the CB icon, right here.

JOIN OUR COMMUNITY!

Join the conversation on Telegram and Twitter!

7,093FollowersFollow
1,193SubscribersSubscribe

What's Hot

Get The Best Of Crypto Briefing!

Crypto news flashes, new DARE research, upcoming mainnet launches, market reports, and much more!

X
X