Litecoin has expectedly obliged us with a 13 percent drop during the weekend as Bitcoin crumbles under pressure.
We discussed in Bounces Off Support that even while the technical indicators were positive for Litecoin, we must remain on the short side. And that has paid off well; the cryptocurrency succumbed to a low of $3.852 before recouping some losses. Now at $4.041, Litecoin is still in tight clutches of the bears.
Technical analysis of the daily LTC-USD price chart reveals that Litecoin may witness jettison by the bulls as bearish pressure mounts, and that we may see a new low in the coming sessions.
Litecoin Chart Structure – Since hitting its peak of $8.650 in July, Litecoin’s chart has been broadly a lower top, lower bottom structure (marked in the chart). As rallies are being sold into and lower bottoms are being hit on a timely basis, there is a high possibility of Litecoin trading at $3.000 in the coming weeks.
Fibonacci Retracement – Litecoin has decisively breached the 23.6% Fibonacci retracement of $4.471, which exposes it to further