Litecoin’s bullish technical pattern, the Reverse Head Shoulders has failed, in line with my expectations. The price has dropped 1.70% to $1.671, just inches away from the strong support level of $1.669. I am expecting this base to be violated in the coming sessions and see sub-$1.600 levels for the cryptocurrency.
My bearish outlook is well supported by the technical considerations derived post an analysis of the 240-minute LTC/USD price chart.
Litecoin Chart Structure – Earlier, Litecoin faced stiff resistance from near $1.690 level but eventually crossed this barrier on low fuel. As a result, the price failed to take off and has instead declined, this time breaching the Reverse HS pattern neckline on the downside.
Fibonacci Retracements – The cryptocurrency is spending ample time near the 61.8% Fibonacci retracement level of $1.669. A break of this level could result in a steep decline below the $1.600 mark, and bring the price closer to the 76.4% retracement level of $1.594.
Moving Average Convergence Divergence