In my Friday’s analysis post, Drops, But Still Near Highs!, I had mentioned that bulls were challenging a key resistance level of $1.865 and may eventually take the price higher to north of $2.000. But, they were overwhelmed by the strong selling pressure over the weekend and Litecoin’s moments of glory came to an abrupt end!
As bears hammered bulls, Litecoin lost 9.82% over the weekend to trade at $1.670.
The 240-minute LTC/USD price chart reveals that the cryptocurrency is now considerably near the crucial support zone, below which we may witness a flash crash.
Litecoin Chart Structure – As can be seen from the chart above, Litecoin was trading between $1.790-1.865 for a considerable period until yesterday which saw bulls lose their patience and important support levels cracked. The freefall came to a stop near the previous peaks (marked as the horizontal blue line) and the price edged slightly higher.
Fibonacci Retracement – With bulls getting steamrolled, the price sliced through strong Fibonacci support levels – 38.2% retracement, 50% and 61.8%. This makes things extremely difficult for