- Litecoin price continued to move higher Intraday, and our yesterday’s buying idea was successfully.
- Now, a bullish flag pattern is forming on the hourly chart (data feed from HitBTC), which may ignite another upside rally.
- A break above the flag resistance area could take the price higher towards $4.00-05 in the near term.
Litecoin price is trading with a bullish bias, and there is another pattern forming which may help buyers to take it higher further.
Litecoin price followed a nice uptrend on the 1-hour chart, and it looks like there is more upside left moving ahead. Currently, a flag pattern is forming on the hourly chart (data feed from HitBTC), which is most likely a bull flag. If buyers succeed in breaking the highlighted flag resistance area, then there is a chance that the price could spike towards the next barrier of $4.00-05.
Alternatively, if the pattern is not a bullish flag, then a break below the support trend line could ignite a corrective rally towards the 100 hourly simple moving average. The 100 MA is sitting near $3.70-60 support area, which holds a lot of importance moving ahead.
If we look at the hourly chart with the data feed from Bitfinex, then there was a perfect rejection near the 38.2% Fib retracement level of the last drop from the $4.30 high to $3.50 low. The price dipped, but failed to close below the 100 MA. A nice bullish candle is forming on the 1-hour chart, suggesting that buyers may gain traction in the short term.
Looking at the indicators:
Hourly MACD – The hourly MACD is about to change the slope to bullish once again, which is a positive sign.
Hourly RSI – The RSI is showing bearish signs, and is currently below the 50 level.
Intraday Support Level – $3.55
Intraday Resistance Level – $3.80
Charts from Bitfinex and HitBTC; hosted by Trading View