Litecoin price analysis: Former support now resistance
Litecoin price analysis indicates that the cryptocurrency could be vulnerable to further heavy losses towards the $14.00 level while price trades below the $50.00 resistance level.
Litecoin has staged a modest rebound above the $30.00 level after the sixth-largest cryptocurrency tracks the broader market.
Litecoin price analysis shows that the $36.50 level is the key trading pivot to watch this week, as former key support becomes key resistance for the LTC/USD pair.
Litecoin medium-term price trend
Litecoin has started to firm above the $30.00 resistance level after the cryptocurrency recently found strong support from just below the $25.00 level.
Cryptos are having a high-correlation with stock markets at the moment, meaning that risk sentiment may influence the direction of digital currencies while fears about the coronavirus remain at elevated levels.
Litecoin technical analysis shows that bulls need to gain traction above the $36.50 level this week in order to encourage fresh technical buying interest.
Failure to overcome the $36.50 resistance level may result in a retest of the current yearly low. Medium-term technical analysis shows that a loss of the $25.00 level could see Litecoin falling towards the $20.00 level.
Historical analysis of the LTC/USD pair shows that the $20.00 level was a former key swing-high from 2013. Below the $20.00 level, the $17.00 and $8.00 level offers major long-term support.
Litecoin short-term price trend
Litecoin technical analysis shows that the cryptocurrency has a short-term bearish bias while trading below the $50.00 level.
The lower time frames show that a large head and shoulders pattern has formed and is currently playing out to the downside.
Gains above the $36.50 resistance level may result in a retest of the neckline of the bearish pattern, around the $50.00 level.
The size of the head and shoulders pattern implies that the LTC/USD pair could fall towards the $14.00 level.
With this in mind, a breach of the $25.00 level may see a decline towards the full downside projection of the bearish pattern.
Litecoin technical summary
Litecoin technical analysis is showing that the $36.50 level is a key trading pivot for the cryptocurrency this week. A rejection from the $36.50 level could see a deeper decline towards the $20.00 level and possibly lower.