Litecoin has been bearish this week after failing to push above 1.72. The 1H chart shows ltcusd declining within a falling channel.
Also, we can see that price is now trading under the cluster of 200-, 100-, and 50-hour simple moving averages (SMAs). This represents bearish bias. However, the moving averages have been moving sideways, which means there is no prevailing downtrend in the 1H chart and this week’s downswing could still be part of a sideways market. If price pulls back but holds under the 1.67-1.68 area, then we would have more evidence that litecoin has turned bearish.
The RSI has tagged 30, and if it pulls up to 60, stalls and turns back down, we would be able to say that the cryptocurrency is developing bearish momentum. At the momentum, the RSI tagging 30 was a sign of a neutral market with oversold momentum.
When we look at the 4H chart, we can see that indeed, p rice has been consolidating since mid-March when price fell to 1.60. LTCUSD then rallied to 1.82 and price has held under this consolidation resistance since.
In fact, we can say that within this sideways market, there has been a bit of bearish bias because after some whiplash price action, LTCUSD started to hold under 1.73. The RSI has also failed to clear above 60, which shows maintenance of the bearish momentum in the 4H chart.
Now, price is trading under the moving averages, which have been sloping down and in bearish alignment. It does seem like there are buys here just above the 1.60 low, so let’s look for a near-term rebound. But because of the prevailing trend and momentum in the 4H chart, we should look for resistance around 1.67-68. If this does happen, look for pressure on 1.60. Below 1.60, litecoin will have the 1.10 low on the year in sight.
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