Litecoin Price Technical Analysis For 16/12/2015 – Bullish Flag Pattern

Key Highlights

  • 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.

Break Higher?

Litecoin Price Technical Analysis Litecoin Price Technical Analysis

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.

Litecoin Price Technical Analysis Litecoin Price Technical Analysis

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

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