Litecoin (LTCUSD) forming a price bottom?The 4hr timeframe chart is used in this analysis to inspect price action in LTUCUSD.
Three things to keep in mind in this case are highlighted on the chart and discussed below:
(1) The major trendline in Litecoin (LTCUSD) since ~January 06, 2018. This bearish trendline is still active and its implication is that it is safest to initiate a position only when price breaks above the trendline. ~$108.77 (very conservative) as indicated on the chart would therefore be the price level to start considering going long (buy). Even more conservative is to wait for a breakout above the trendline and also consolidation before going long.
(2) Price action consolidating around $73 since ~June 24, 2014 and refusing to break to lower lows indicates a possible move to the upside. Also present in the bottoming area of price action is a double bottom (between June 24 and June 29) that confirmed on June 1. This argues for bullish bias for Litecoin (LTCUSD).
A less conservative strategy would be to initiate a trade as soon a breakout occurs above ~$93.76 in anticipation of a break above the bearish trendline.
(3) The relative strength index (RSI) as shown here does suggest that bearish momentum is running out, and therefore plausible that bullish action might resume for Litecoin.
Above all, patience is required to see what comes up next for Litecoin (LTCUSD) with necessary action to follow. Moreover, it is also important to pay attention to momentum on the Weekly tf as a longer term perspective is always crucial.
Price closing below ~$73.70 in this case would imply the resumption of a selloff in Litecoin (LTCUSD).
