LTCUSD Analysis: Hanging Man Pattern Is below $87.83
Bulls could not take control of the market last week, and after touching a high of $87.83 on 06 May, the price started to correct lower against the US dollar, touching a low of $77.17 on 10 May.
There is a hanging man pattern below the $87.83 handle on the H1 timeframe. It signifies the end of a bullish phase and the start of a bearish phase in the market.
The Litecoin price is back under the pivot point in the daily timeframe.
Also, Litecoin price is trading below its 100-hour simple moving average and 200-hour exponential moving average and just above its pivot level of $80.05.
The relative strength index is at 48.97, indicating a neural demand for Litecoin and the shift towards the consolidation zone in the markets.
Litecoin remains below most of the moving averages, which is a bearish signal at the current market level of $80.33.
The short-term outlook for Litecoin has turned mildly bearish.
- Some of the technical indicators are bearish.
- Litecoin price bearish reversal is seen below the $87.83 level.
- The RSI is neutral.
- The average true range indicates low market volatility.
Litecoin Bearish Reversal is seen below $87.83
Litecoin to USD exchange rate is ranging near a new record 1-month low. Litecoin continues to move in a mild bearish momentum after its recent decline below the $85.00 level. Litecoin faces resistance at $84.55, at which the price crosses the 9-day moving average, and at $84.77, which is a 14-3 day raw stochastic at 50.
As the Litecoin price is now moving into a narrow range, we are expecting some bearish moves after the price crosses the $80.00 handle.
The ADX is signalling neutral market conditions, which means that the price is expected to move in a narrow range in the short term. Some of the technical indicators are also neutral.
LTCUSD is about to break its classic support level of $79.47 and Fibonacci resistance level of $79.90, after which the path towards $75 will get cleared.
The Week Ahead
Litecoin has entered a consolidation zone above the $76.00 handle.
Most technical indicators are signalling a bearish sentiment in the market.
Litecoin should stay above the important support level of $72.87, which is a 50% retracement from the 52-week high/low, and at $75.61, which is a 1-month low.
The short-term outlook for Litecoin has turned mildly bearish, the medium-term outlook is bearish, and the long-term outlook is neutral at present market conditions.
The weekly projection is $75, with a consolidation zone of $80.
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