- Litecoin remains bullish in the short-term, with the popular cryptocurrency trading above key support on the four-hour time frame
- The LTC / USD pair has a bullish medium-term outlook, with the pair still trading above its 200-day moving average
- Bulls need to quickly rally the cryptocurrency higher or they risk steep downside losses.
Litecoin / USD Short-term price analysis
Litecoin is bullish in the short-term, with the cryptocurrency still trading above its 200-period moving average on the four-hour time frame.
A potential bearish head and shoulders is starting to take shape on the four-hour time frame, although some caution is warranted, as the LTC / USD pair invalidated a larger head and shoulders pattern last month and is still technically bullish.
Indicators on the four-hour time frame suggest that the Litecoin is attempting to build bullish momentum, with both the MACD and RSI starting to turn upwards.
The four-hour time frame shows the formation of a bearish head and shoulders pattern with the neckline of the pattern located close to the cryptocurrencies 200-period moving average.
Relative Strength Index
The Relative Strength Index is bearish on the four-hour time frame, although the indicator is attempting to turn higher.
The MACD indicator is slightly bearish, with the MACD histogram attempting to trend higher.
Litecoin / USD Medium-term price analysis
Litecoin remains bullish over the medium-term, with the cryptocurrency still trading above its trend-defining 200-period moving average.
The LTC / USD pair has started to lose bullish momentum, with buyers failing to create fresh higher highs. Bulls soon need to break above the February monthly trading high or the cryptocurrency may start to slide back towards the descending channel on the daily time frame.
It is worth noting that technical indicators on the daily time frame show significant scope for further downside if selling pressures start to accelerate.
Traders should note that a bullish inverted head and shoulders pattern formation will take shape if buyers push price towards the November 2018 trading high.
The MACD indicator on the daily time frame is generating a bearish signal, with the indicator showing considerable scope to turn lower.
Relative Strength Indicator
The RSI indicator is starting to turn lower on the daily time frame; traders should also note the potential bearish triple top formation on the indicator.
Litecoin bulls will soon need to stage a rally above the February monthly trading high or the cryptocurrency will start to come under increasing selling pressure.
Caution is advised for traders looking to sell the LTC / USD pair at current levels, as further technical confirmation is needed before the fifth-largest cryptocurrency officially turns bearish over both the four-hour and daily time horizon.
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