Litecoin price analysis: strong bearish bias below $46
12:20, 17 September 2020
Litecoin has failed to recover above the $50 level after the recent cryptocurrency market sell-off, placing the LTC/USD pair in a vulnerable technical position.
Litecoin price analysis shows that the cryptocurrency is at risk of heavy losses if the price moves below the $46 support level.
Litecoin medium-term price trend
Litecoin continues to struggle below its key 200-day moving average, despite the recent recovery in Bitcoin and the broader crypto market.
Litecoin technical analysis shows that the LTC/USD pair could fall towards the $38 area over the medium term.
The daily time frame shows that the cryptocurrency is trading inside a large triangle pattern, between $58 and $48.
According to the size of the triangle, a bearish breakout could see the LTC/USD pair falling towards $38.
To the upside, a breakout above the $58 level could see the LTC/USD pair rallying towards $68, and possibly higher.
Traders should note that the $52 and $55 regions offer strong technical resistance prior to the $58 level.
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Litecoin short-term price trend
Litecoin technical analysis shows that the cryptocurrency has a bearish short-term bias while the price trades below $51.
The one-hour time frame shows that a bearish head-and-shoulders pattern has recently formed. A breakout below the neckline of the bearish pattern, around the $46 level, could see the LTC/USD pair falling towards $41 over the short term.
Traders should note that the bearish pattern will be invalidated if the price moves above $51.
Technical analysis highlights that a counter-rally towards the $56 level may commence if the price moves above $51.
Litecoin technical summary
Litecoin technical analysis indicates that the cryptocurrency is increasingly bearish over the short to medium-term. Bulls need to move the price above $51 level to relieve bearish downside pressure.
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