LTC / USD Defends Critical Support, New Uptrend Eyes $ 80 – Confluence Detector

• Litecoin relies on confluence support levels above $ 70 to support gains of up to $ 80.
• LTC / USD must close the day above the 50 SMA on the 4-hour chart to confirm the expected breakout.

Litecoin has embraced support at $ 65 following its steep decline on Thursday. A higher short-term peg was set at $ 70. LTC / USD is trading at $ 72 amid constant push for further recovery from the bulls.

Litecoin bulls set their sights on $ 80 as recovery looms

LTC is trading above the 50 simple moving average, which lends credence to the bullish narrative. Note that Litecoin hasn’t traded hands below this crucial level since mid-October.

The 50 SMA is still widening the gap above the 100 SMA and the 200 SMA, suggesting that buyers have the upper hand. Resistance is expected at $ 80 and is likely to delay the target uptrend by $ 90 and $ 100 respectively.

LTC / USD daily chart

The TD Sequential Indicator presented a buy signal in the form of a red nine candle on the 4-hour chart of LTC. The bullish formation approximates that a surge in Litecoin demand could see it rise by one to four candles per day. Note that if buying pressure builds steadily, LTC / USD could start a new uptrend towards $ 100.

LTC / USD 4-hour chart

The same 4-hour chart shows that if Litecoin closes the day above the 50 SMA, a breakout to gains at $ 80 and above could enter the picture. Likewise, the relative strength index recovered from oversold, thereby strengthening the bullish outlook.

According to the confluence detector, Litecoin is sitting on areas with immense support. The initial anchor is seen at $ 71.9, as evidenced by the one-day mid-day Bollinger Band limit, the previous low of 15 minutes, and the previous high of one hour.

The second strong support is found at $ 71.7 and is home to a Fibonacci 38.2% one day and the Bollinger Band’s average limit of 15 minutes. On the upside, trading above the confluence resistance at $ 72.9 could trigger a rally to $ 80.

LTC / USD Confluence Chart

It is worth mentioning that if the price closes the day below the 50 SMA on the 4-hour chart, Litecoin could be forced to abandon the bullish outlook. On the other hand, the break below the confluence support could trigger massive dips, perhaps strong enough to break out of the next critical support at 200 SMA in the same 4 hour time frame.