Litecoin (LTCUSD) 1H Chart 3/9 (click to enlarge)
Breakout: Litecoin is starting this week with a bullish breakout from a consolidation pattern that was formed last week. The 1H chart shows that price retreated from 2.00 and fell to 1.87 by the end of last week. This decline had the structure of a falling wedge, which is often assessed as a pause to an uptrend. Indeed, after the choppy consolidation for a few sessions, LTCUSD looks ready to push onto and beyond the 2.00 handle.
Note that last week’s consolidation brought together the 200-, 100-, and 50-hour SMAs. This is often the sign of a directionless market. Then, whether price uncoils above or under it should give us some short-term direction. In this case, we are seeing litecoin not only break above the falling wedge resistance but uncoil by bouncing off the cluster of moving averages.
Bullish Targets: As noted before, the 2.00 handle is now in sight. There is a common resistance in the 2.00-2.05 area. Above that there is a strong resistance pivot around 2.43. Above this resistance pivot litecoin would be looking at the 2.74 high on the year, which essentially where the year started on January 1st.
Litecoin (LTCUSD) 4H Chart 3/9
(click to enlarge)
At this point, a failure to break above 2.05 and a return below 1.90 would invalidate the aforementioned bullish outlook. Instead, breaking below 1.90 would indicate further consolidation if not a bearish outlook. There would still be some near-term bearish pressure towards common support around 1.80 and then 1.70. Below 1.65, litecoin would have the 1.10 low on the year in sight.
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