Litecoin price analysis: $60.00 downside target
10:10, 24 February 2020
Litecoin turned sharply lower alongside the broader cryptocurrency market last week after finding strong selling interest from the $84.50 level.
Litecoin price analysis shows that the sixth-largest cryptocurrency could still fall further before making a strong recovery to fresh 2020 highs.
Litecoin medium-term price trend
Litecoin reversed sharply lower last week as the sixth-largest cryptocurrency tumbled below the $70.00 level.
The LTC/USD pair fell alongside Bitcoin, as the BTC/USD suffered its fifth-largest one-hour drop since it began trading.
Litecoin technical analysis shows that the cryptocurrency could still move back towards the $60.00 level before returning to the $84.50 level again.
A bullish reversal pattern on the daily time frame is warning that once the $80.00 level is breached with conviction again, the LTC/USD pair could soar towards the $120.00 level.
Equally, a powerful double-bottom pattern formation is also present on the daily time frame, following the recovery from $36.00 earlier this year.
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Litecoin short-term price trend
Litecoin technical analysis shows that the cryptocurrency has a strong short-term bearish bias while trading below the $72.50 level.
The lower time frames show that a bearish head and shoulders pattern is present, with the neckline of the pattern around the $72.50 level.
Looking at the downside potential of pattern, it implies a drop towards the $60.00 level is on the cards.
Minor corrective rallies back towards the $80.00 to $81.00 area may be used as a selling opportunity.
Litecoin technical summary
Litecoin technical analysis is showing that the cryptocurrency could decline towards the $60.00 level before the next rally begins. Sustained gains above the $84.50 level would negate the bearish short-term outlook.