Disclaimer: The findings of the following article attempt to analyze the emerging patterns in the Litecoin short-term market and its impact on the price.
The Bitcoin market has been eclipsing the gains and losses in the altcoin market. Litecoin has been moving on the tunes of Bitcoin and with the recent fall on Saturday, the LTC market has changed to form a bearish trend.
The LTC price was seen reaching a peak before a sudden fall took over. The resistance was noted at $64.89 and as LTC hit this point, it went on a downward trajectory.
Litecoin 4-hour Chart
Source: LTC/USD on TradingView
The above 4-hour chart of Litecoin highlighted the digital asset was trending lower, but the lows were marked horizontally at $57.73. These lows formed a part of a descending triangle forming due to the slipping value of LTC.
Given the volatility in the market, the LTC price did witness a strong gain followed by a strong loss but has not managed to reverse this trend. This indicated a bearish trend in the market and could mean the coin could experience another swing downwards.
Reasoning
The Bollinger Bands indicator was quite diverged, at press time, which was an indicator of high volatility in the LTC market. The signal line has taken a position above the candlesticks, while the 50 moving average was at a crossing over juncture.
The Relative Strength Index on the other hand was at an equilibrium state. This meant that the buying and the selling pressure for LTC were evened out.
Positions
With the building selling pressure, the traders may want to assume a short position.
Stop-loss: $60.31
Take-profit: $54.33
Conclusion
The above market trend indicates a fall upcoming in the market. There have been strong supports marked at $56 and $54, after which the coin may see a reversal.
