Owing to short covering and some value buying, Litecoin has managed to reach the stop-loss level of $1.690 mentioned in All the Reasons to Short!. So, will we see an upside breakout or will the bears make a timely entry, let’s find out here.
Litecoin is trading up 3.37% at $1.688.
A technical analysis of the 240-minute LTC/USD price chart has been conducted to help the market participants make informed trading decisions.
Litecoin Chart Structure – Litecoin has rebounded strongly after crashing to a low of $1.562. Interestingly, the cryptocurrency has formed a Reverse Head Shoulder pattern – a reversal pattern, completion of which results in a price advance of the underlying security – and is on the verge of breaking out. The pattern’s neckline coincides with the previously stated pressure point of $1.690. If bears get nervous now, bulls will take away the game from them.
Fibonacci Retracements – The cryptocurrency is currently trying to sustain above the 61.8% Fibonacci retracement level of $1.668. Having failed twice earlier