Is Litecoin’s (LTC) Trend Bullish or Bearish?

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The Litecoin (LTC) price has declined below an important support level but reclaimed it shortly afterward. While rallies in the short/medium-term are expected, it looks as if the price has begun a bearish impulse.

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Reclaim of Support

The Litecoin price has been falling since August 17, when the price was trading at $68.94. The price reached a low of $41.66 on Sept 21.

The main support and resistance areas are found at $48 and $64, with a minor resistance level being at $54.

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Even though the price initially declined well below the $48 support area, it proceeded to move upwards and reclaim it. As long as the price is trading above $48, it should continue moving upwards towards $54, and possibly $63.

LTC Chart By TradingView

Technical indicators on the daily time-frame are bullish, supporting this proposed rally.

  • The MACD is increasing and is in positive territory.
  • The RSI is increasing and is above 50.
  • The Stochastic Oscillator has made a bullish cross and is moving upwards.

Therefore, the price should rally towards $54 and possibly higher. A look at the lower time-frames is required to determine exactly how it will get there.

LTC Chart By TradingView

Attempt to Move Above Resistance

The shorter-term 6-hour chart shows the price attempting to break out above the minor resistance level at $51, above which it has not traded since September 5. This is the third attempt.

However, the MACD is falling and the RSI has formed bearish divergence. This suggests that a decline towards $48 could occur before the price potentially moves upwards.

Besides horizontal levels, there is no clear structure or trading pattern in place,

LTC Chart By TradingView

LTC Wave Count

Cryptocurrency trader @TheEWguy outlined an LTC chart, which shows a long-term bearish count that could take the price all the way down to $9.

Source: Twitter

In BeInCryptos Sept 18 LTC analysis, it was stated that:

“If this is the correct count, the current movement would be some type of sub-wave 4 (in black), after which the price would decrease once more.”

The price did fall once more, reaching the previous low of $41.66 on Sept 21 and completing wave 5 (shown in blue below). While it seems too early to call for a $9 target, it does look as if the price has begun a bearish impulse after the Aug 17 high (highlighted in red).

Prior to doing so, it looks as if LTC completed an A-B-C correction (black), suggestubg the possibility of the beginning of a bearish impulse.

LTC Chart By TradingView

If correct, the price has begun an A-B-C correction (blue), which should end near the previously mentioned minor resistance area at $54.

The $54 area coincides with both the 0.5 Fib retracement level of the entire downward move and the 1.61 Fib length of wave A. Afterwards, a decline seems like the most probable scenario.

LTC Chart By TradingView

To conclude, while the LTC price is expected to rally towards $54 and possibly slightly higher, it’s likely that the long-term trend is bearish.

For BeInCrypto’s Bitcoin analysis, click here!

Disclaimer: Cryptocurrency trading carries a high level of risk and may not be suitable for all investors. The views expressed in this article do not reflect those of BeInCrypto.

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All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
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Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona graduate school of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst.

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