Litecoin price analysis: closely watching the $62.50 level
13:22, 21 August 2020
Litecoin is starting to correct lower, after the eighth largest cryptocurrency by market capitalisation recently hit a multimonth trading high around the $69 level.
Litecoin price analysis shows that the cryptocurrency could start a corrective drop towards the $50 support area if the price holds under the $62.50 level.
Litecoin medium-term price trend
Litecoin is starting to appear more bullish over the medium term, following the recent breakout rally towards the $69 level.
Litecoin technical analysis shows that the LTC/USD pair may need to correct lower before the next major push towards the $80 level commences.
The daily time frame shows that major trendline resistance around the $62.50 level is acting as a key medium-term pivot for traders.
Technical analysis shows that the important trendline around the $62.50 level is formed by attaching the August 2019 swing high to the current 2020 trading high, around the $84.50 level.
Weakness under the $62.50 level could cause a decline back towards the $56 and, possibly, $50 areas.
Stabilisation above the $62.50 level is likely to prompt further technical buying back towards the 2020 trading high around the $84.50 level.
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Litecoin short-term price trend
Litecoin technical analysis shows that the cryptocurrency has a bullish short-term bias while the price trades above the $55 level.
The lower time frames currently show that a large head-and-shoulders pattern has recently formed, following the reversal from the $69 level.
According to the size of the bearish pattern, the LTC/USD pair could fall towards the $55 level over the short term.
It is also noteworthy that the neckline of the bearish pattern is located around the $62 level.
Litecoin technical summary
Litecoin technical analysis shows that bears may be preparing to activate a bearish head-and-shoulders pattern and force a technical test of the $55 to $50 support area.