Litecoin Price Technical Analysis for 6/3/15: Waiting to Bounce Back

By March 6, 2015Bitcoin Business
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Litecoin Price Technical Analysis for 6/3/15: Waiting to Bounce Back

The Litecoin price in the USD markets dropped 1% in over the last 24 hours, while tailing Bitcoin to its bearish correction sentiment. A part of this downtrend could be blamed on the fundamentals surrounding the routinely happening Silk Road Bitcoin auctions. The Bitcoin’s value has always retreated little-to-medium once the auction is done. The Litecoin price, as usual, has followed its locomotive’s sense of direction.

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By looking at the 4H OKCOIN chart above, we can see Litecoin price almost going below the 50-H MA (the black curve). There it is also very close to entering the oversold area (right below the blush shaded region). The RSI meanwhile also has its head towards south, currently near 44. And the MACD blue curve is inches away from entering the negative territory; its saffron signal line remaining way above.

In each and every technical indicator discussed above, you can notice how the Litecoin price is trying to float above crucial support levels. To elaborate it further, I have drawn a Fib Retracement diagram between intra-month peak 1.98 and low 1.80. There you can notice price to be situated between 50% and 38.2% retracement levels. If the current bearish indication is to be believed, the Litecoin price is currently testing 1.88 as its next support, with a downside risk towards 1.86.

For all we can notice, the Litecoin price is hoping to break even from the prevailing near-term downtrend by attempting a bounce back at the next support. In the event of a break below this support, the downside movement will want to test the next possible support level, presumable holding a nice buying opportunity. This support could be near 1.85 — also the 200-H MA.

Conclusion

A close near 1.88 would validate bearish momentum, from where you could set your stop loss near 1.85-1.86 area. If we get a break from 1.88, we may see a little upside correction (a good chance to enter the market) towards 1.90. A break above 1.90 level would invalidate the prevailing bearish sentiment.

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