Conclusion for today’s Litecoin Analysis: Price closing above $41.19 is the most conservative way to initiate a long (buy) trade. Litecoin closing below $27.49 reduces the chance of continuation of the current bullish price swing.
Litecoin Analysis is carried out on a 4 hour timeframe with price action from November 24, 2018 to January 6, 2019 indicating the formation of a chart pattern referred to as a head and shoulders bottom or inverted head and shoulders bottom.
Same chart pattern was successfully used as part of strategy for this trade. The above mentioned pattern has bullish implications ideally, with confirmation occurring after price closed above the neckline at ~$35.92.
The immediate bullish trendline drawn on the 4 hour timeframe has currently been broken to the downside which is bearish. $29.36 and $27.49 represents the region of support for Litecoin and these price levels should offer a floor for price action should the current retracement reach support.
Price closing below $27.49 decreases the chance of continuation of the current bullish trend. The most conservative way to go long (buy) is to initiate an order on breakout above the high of January 8, 2019 which = $41.19, with the width of the head and shoulders bottom providing a minimum target for price upon breakout.
Sign up now for full access to our premium research and analysis to learn more about Litecoin Analysis , forecast, other Cryptocurrencies and Foreign Exchange (FX) pairs.
Interested in Bitcoin Analysis (BTCUSD)? Checkout our previous free blog post here.