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Disclaimer: The results of the following article attempt to analyze the emerging patterns in Litecoin short-term market and its impact on price.
The Bitcoin market has eclipsed the gains and losses in the altcoin market. Litecoin moved on Bitcoin tracks and with the recent dip on Saturday, the LTC market has changed to form a bearish trend.
The LTC price was seen to peak before a sudden drop took place. Resistance was seen at $ 64.89, and when LTC reached this point, it was on a downward trajectory.
Litecoin 4 hour chart
Source: LTC / USD on TradingView
Litecoin’s 4-hour chart above showed that the digital asset was down, but the lows were marked horizontally at $ 57.73. These lows formed a part of a descending triangle that formed due to the slip value of LTC.
Given the volatility of the market, the LTC price witnessed a strong gain followed by a strong loss but failed to reverse this trend. This indicated a bearish trend in the market and could mean that the coin could experience another downward swing.
Reasoning
The Bollinger Bands Indicator was quite divergent at press time which was a high volatility indicator in the LTC market. The signal line took a position above the candles, while the 50 moving average was at a cross.
The Relative Strength Index on the other hand was in a state of equilibrium. This meant that LTC’s buying and selling pressure had been balanced.
Positions
With increasing selling pressure, traders may want to take a short position.
Admission: $ 59
Stop loss: $ 60.31
Take-profit: $ 54.33
Risk-reward: ~ 3.56
Conclusion
The above market trend indicates an impending decline in the market. There were strong supports marked at $ 56 and $ 54, after which the coin could see a reversal.
