Litecoin Price Technical Analysis For 01/06/2016 – Primed For Losses?

Key Highlights

  • Litecoin price failed to trade higher and broke a short-term triangle pattern on the 30-min chart via the data feed from Bitfinex.
  • The price after the break retested broken support area, which acted as a resistance and stalled gains.
  • There is another significant breakout pattern in formation if we look at the 2-hours chart with the data feed from HitBTC.

Litecoin price struggle to gain traction continued, and as a result there was a downside reaction taking the price below a short-term support area.

Price to Continue Trading Lower?

Litecoin price yesterday struggled to break a contracting triangle pattern formed on the 30-min chart via the data feed from Bitfinex. Our idea of a short-term buy did not work out, as the price never managed to settle above the contracting triangle. In fact, our idea of selling with a break worked, as the price traded below the support trend line of the triangle and moved towards the $3.44 level. An important point to note is that the price retested the broken triangle trend line where it found sellers for a downside move. It can be seen as a perfect example of a support acting as a resistance once broken.

Read more ... source: NewsBTC USA