Litecoin has gone back and forth during the session on Monday as risk appetite is all over the place. That being said, Bitcoin has shown itself to be positive during the day so this could end up being a little bit of a catalyst for other coins such as Litecoin to pick up momentum.
That being said, the market continues to see a lot of noise in general, and the candlestick for the day in the Litecoin market is the epitome of what I am seeing around the world. The neutral candlestick that has found the $100 level to be supportive yet again is a nice binary trade that is being set up. If we can break above the top of the candlestick, that would obviously be a bullish signal, while breaking down below the bottom of the candlestick would be a very negative candlestick.
If we do break to the upside, we will more than likely go looking towards the $125 level, which is rapidly attracting the 50 day EMA that is just $5 above that level. Furthermore, the 50 day EMA continues to offer a lot of technical resistance, almost like a trendline. On the downside, if we were to break down below the $100 level, we will almost certainly test the bottom of the hammer from three days ago, and breaking down below that would certainly open up a bit of a “trapdoor” when it comes to this market.
Litecoin desperately needs Bitcoin to really take off to the upside in order to push this market higher, because money flows from Bitcoin to other altcoins such as Litecoin. That being said, the market could be trying to form some type of “double bottom”, and with that being the case it is likely that we are in the midst of trying to form some type of bottoming pattern. However, if we were to break down below this potential double bottom, I believe that Litecoin will go looking towards the $80 level rather rapidly. This would almost certainly be in concert with Bitcoin and other larger crypto markets falling at the same time. The $100 level has been important multiple times in the past, so it is worth noting that we are essentially “stuck” in this general vicinity yet again.
