Litecoin (LTC) Price Analysis: Risk of Downside Extension Below $70May 6, 2019
Litecoin price failed to gain strengthabove the $80.00 resistance against the US Dollar. LTC started a fresh declineand it could even break the $70.00 support in the near term.
Key Talking Points
- Litecoin price failed to break the $80.00barrier and declined recently (Data feed of Kraken) against the US Dollar.
- There is a major bearish trend line formed withresistance near the $77.60 level on the 4-hour chart.
- LTC price recently declined below the $74.80support and a connecting bullish trend line.
Litecoin Price Analysis (LTC)
This past week, there were strong gains in bitcoin, but most altcoins such as Ethereum, EOS, ripple, litecoin and others struggled against the US dollar. The LTC/USD pair faced a strong selling interest near the $80.00 resistance and recently started a downward move.
Looking at the 4-hour chart, LTC price topped near the $81.50 level and later declined sharply. There was a break below the $78.00 and $76.00 support levels to push the price back in a bearish zone.
During the decline, the price traded below the $74.80support and a connecting bullish trend line. Moreover, there was a close belowthe $75.40 support and the 100 simple moving average (4-hour).
Besides, there was a clear break below the 50% Fibretracement level of the last wave from the $65.23 low to $81.48 high. Theprice declined below $72.50 and recently tested the $71.20 support area.
It seems like the 61.8% Fib retracement level of the last wavefrom the $65.23 low to $81.48 high is currently acting as a support. If thereis a downside break below $71.20, there is a risk of more losses below the$70.00 support level.
The next key support is near the $68.00 level, where thebulls may appear. On the upside, there is a major bearish trend line formed withresistance near the $77.60 level on the same chart. To start a fresh increaselitecoin price must break the $74.80 and $77.60 levels. As long as LTC is below$74.80, there is a risk of more losses below $70.00.
The market data is provided by TradingView.
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