Litecoin broke above a narrow consolidation during the April 22nd session and headed to 1.48 before stalling at the start of the April 23rd session. Let’s go over the 1H and 4H charts to monitor the bullish attempt.
As price retreated ltcusd found support at 1.44. So far, the bullish technicals in the 1H chart are intact:
1) The moving averages have started to slope up and have formed a bullish alignment, with the 50-hour above the 100-hour, above the 200-hour SMAs.
2) The RSI has broken above 70, which signaled the initiation of bullish momentum. But it has to hold above 40 to show maintenance of this momentum. So far, it is passing the momentum test as the RSI held above 50.
Now if the pullback continues lower, the bullish outlook is still in play if price can hold above 1.42, and the 1H RSI above 40. However, if price falls below 1.40 with the RSI back below 40, we are likely still in the sideways-bearish mode, which we can see in the 4H chart.
In the 4H chart, we can see that the prevailing trend is bearish. In fact, ltcusd recently made a low on the year with a spike down to parity, 1.00, and the medium-term mode remains pressured towards that level again.
However, the 4H RSI has broken above 60, which failed the bearish momentum test in this time-frame. Furthermore price has broken above the 50-period SMA, and cracked the previous consolidation resistance at 1.46. For these reasons, we say the mode is no longer simply bearish, but neutral-bearish. Therefore, as we noted above, a break below 1.40 keeps the cryptocurrency in bearish-neutral mode, with the emphasis on the bearish component. Note, a break below 1.40 would also bring ltcusd back under the 50-period SMA. In this scenario, the pressure will first back back towards the 1.32 support, below which the 1.00 target would remain in sight.
Previous Post by Author: Bitcoin Price Technical Analysis for 22/4/2015 – Uncoiling Upwards