In this new Wednesday crypto nugget, we are going to take a look at one of the market dinosaurs : THE Litecoin (LTC). With a recent halvinga lot expected a rise of the asset towards price levels that we have not seen since the start of 2022. However, the reverse happened, the halving having operated a bit like a wet firecracker. Disappointing, right? Without further ado, let’s head over to TradingView to identify the key levels to watch and the bias to have on the asset for the next few weeks.
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LTC in the midst of a battle against its technical pivot
There first half of 2023 was marked with a tidy on the LTC between its pivot at $67.66 and a resistor (not shown on the graph) at $97. After an excess over a major technical area (shown in red) at $115, the LTC quickly turned around in the direction of his pivot who failed to make bounce the course.
Not having found itself under the pivot during the whole of 2023, the market seems to have found a acceptance under this technical levelwhich favors, in the current state of affairs, a bearish bias for the next few months. In this context, where could the LTC be headed? At first, it will probably take the direction of 47.5 dollars (support zone) on which the price has been maintained for several months.
With many liquidity under this zoneit is quite possible to have a continued decline with a wick below 39 dollars, a level that LTC has not recovered in over three years. Until the pivot is regained, the bearish bias should be maintained on LTC. Nevertheless, for the asset to be able to retrace to such low price levels, it will surely result in bearish momentum on major market assets such as Bitcoin and Ethereum.
Lots of levels to watch
On the daily timescale, the price situation is in line with the weekly timescale. After passing under the pivot, the LTC now battles with a technical level to $62operating as support since December 2023. You can notice this with the scenario depicted on the graph. A passage below this technical level will open the way to $55.97 (old resistor)the last bastion before a return to the weekly support zone at $47.5.
However, while LTC has been falling for several weeks, the probability of a technical rebound to liquidate some shorts is a possible option. This could notably follow a potential return to $55.97 if the price were to sideways before getting there. For now, the bullish bias is difficult to envisage in view of the strong declines as well as the low number of rebounds, all aborted in a few days.
Buyers will need to proof of strength to successfully operate a trend reversal that results in a distance from the LTC with respect to its level pivot. During the next few days, it will therefore be necessary watch carefully the technical level $62. If the buyers were to show up on it, it could be a first positive sign in favor of a return of LTC to its pivot.
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