Conclusion for today’s Litecoin Price Analysis:
Litecoin should sell off, albeit temporarily on a close below 75.33.
Litecoin price analysis for today is presented on an intraday timeframe (1 hour) with the main purpose of exploring the current chart pattern(s) under formation. Coverage of price action is from April 02, 2019 to current date.
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Breakout from a region of consolidation saw the price of Litecoin make a move from ~60.18 on April 02, 2019 to a peak in price of ~99.89 a day after. This peak in price has been followed by an overall sideways price movement to downward at best.
A descending triangle (ideally bearish) is one of the chart patterns identified in this analysis. The second pattern that attention is drawn to is the ranging, sideways movement of price action between 83.78 and 75.33 (also lower boundary of descending triangle).
The use of horizontal lines that are parallel to each other provides the flag for a flag pole formation. The Pole in this case is taken to be the price swing from 96.17 (price open on April 06, 2019) to 75.33. The flag formation is an intraday pattern that is ideally in a continuation position i.e. the chart pattern implies continuation of the trend prior to its formation.
Subtracting 75.33 from 90.53 provides the necessary distance to anticipate Litecoin to sell off upon a breakout below 75.33.
Alternatively, the descending triangle can be used for projection downwards if price closes below 75.33. Measurement in this case of the width of the triangle is from the price peak in April 03, 2019 (99.89) to 75.33.
The use of chart patterns in trading is even better when combined with momentum studies and also understanding how bigger timeframes provide guidance for intraday timeframes.
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