Litecoin Price Technical Analysis for 20/8/2015 – New Low On Strong Volume

Litecoin is currently trading up 1.66 percent at $3.489 as the Bitcoin market looks to settle near the crucial support of $220.

However, this is not the complete story. As bears went berserk, Litecoin dived to a fresh 1-month low of $3.160, much closer to my monthly target of $3.000, before bouncing back. The volume registered on the decline was far greater than on the rebound.

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litecoin price chart

Image: https://www.tradingview.com/x/Q1L44jgd/

But, will this rebound sustain? Let us find out what the latest technical indications are.

Litecoin Chart Structure – While the dead-cat bounce may extend further, I see it facing renewed selling pressure near the previous lows in the vicinity of $3.800. As for a bottom, it is better to adopt a wait and watch approach.

Moving Average Convergence Divergence – MACD has succumbed to yet another low of -0.1657, Signal Line has dropped to -0.1001 while the Histogram has slumped to -0.0655. The first bullish sign would be the positive crossover of MACD and Signal Line.

Momentum – The Momentum indicator is showing a value of -0.4102.

Money Flow Index – The MFI is showing signs of a reversal; the last observation was made at 24.8578.

Relative Strength Index – The 14-day RSI is at 40.6872, indicating that bears still hold the aces.

Conclusion

As I mentioned in my previous Litecoin technical analysis Pure Mayhem, I still do not see a good reason to buy Litecoin at the current level. However, the medium-term chart structure is a strong downtrend and any substantial rise should be used to exit the cryptocurrency or build fresh short positions.

I am expecting the volatility to not die anytime soon, and there may be surprising price moves in the coming sessions as well.

The Bitcoin market is at a make-or-break juncture, and hence market participants must track it for important trading clues.

Source

TheBitcoinNews.com – leading Bitcoin News source since 2012