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Litecoin / USD Technical Analysis: Lighting The Fire

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  1. Litecoin is bullish in the short-term, with the cryptocurrency testing towards the highest levels of 2019

  2. The four-hour time frame shows a large ascending triangle pattern

  3. The LTC / USD pair is increasingly bullish over the medium-term, with price holding firm above its 200-day moving average

 

Litecoin / USD Short-term price analysis

Litecoin is bullish over the short-term, with buyers still firmly in control of the popular cryptocurrency.  Price is also trading close to the best levels of the year, with strong dip-buying demand still seen in the LTC / USD pair.

The four-hour time frame is showing a large ascending triangle pattern, with price currently testing trendline resistance from the pattern. Traders should note that ascending triangle patterns are typically bullish patterns and sometimes signal a reversal at the end of a bearish downtrend.

The mentioned time frame is also showing that the October 15th swing-high, around the $66.00 level, currently offers the strongest form of technical resistance above.


LTC / USD H4 Chart                                                                         (Source: TradingView)

Pattern Watch

If a bullish breakout occurs above trendline resistance, the upside price projection is found by measuring the widest distance of the pattern and applying it to the resistance breakout point.

Relative Strength Index

The Relative Strength Index is slightly bullish on the four-hour time frame and is showing that bullish momentum is building.

MACD Indicator

The MACD histogram is attempting to recover on the mentioned time frame, with the signal line and the MACD histogram trying to move higher.

 

Litecoin / USD Medium-term price analysis

Litecoin remains bullish over the medium-term, with the cryptocurrency growing increasingly confident above its trend defining 200-day moving average.

The daily time frame shows that the LTC / USD pair has been steadily rising, following its bullish breakout from a descending price channel last month. The mentioned time frame also shows that the $69.00 level currently offers the strongest form of near-term resistance above the pair’s current 2019 trading high.

If the LTC / USD pair does advance towards the $69.00 level, traders should note that a larger inverted head and shoulders pattern will then form on the daily time frame.


LTC / USD Daily Chart                                                                         (Source: TradingView)

Pattern Watch

The daily time frame is highlighting that a series of bullish inverted head and shoulders patterns will take shape if the advance continues.

Relative Strength Indicator

The Relative Strength indicator is bullish on the daily time frame and is currently showing slight bearish price divergence.

MACD Indicator

The MACD indicator is conflicted on the daily time frame, with the MACD histogram moving lower, while the MACD line is in overbought territory.

 

Conclusion

Litecoin is growing increasingly bullish over the short-term and medium-term, with both time horizons showing that the LTC / USD pair is trading at a critical juncture.

If bulls can ignite the cryptocurrency above the $60.00 resistance level, the LTC / USD is likely to advance towards the $69.00 level. The daily time frame is highlighting that the $95.00 level remains a distant upside target, while the $45.00 level currently offers trend-defining support.



Litecoin Chart

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