Litecoin Price Analysis: LTC/USD Flash Crash and Reversal
Litecoin price declined sharply from $100.00 against the US Dollar. LTC/USD traded below $80.00, but later recovered sharply.
Key Talking Points
Litecoin price extended its gains and moved to a new high at $102.40 against the US Dollar before breaking down.
There was a break below a major bullish trend line with support at $94.00 on the 2-hours chart of LTC/USD.
The pair tested the $70.00 support area and recovered above the $80.00 level.
Litecoin Price Forecast
Buyers enjoyed the recent upside ride above $90.00 in Litecoin price against the US Dollar. The LTC/USD pair gained heavy traction and was above to move above the 100.00 level. A new high was formed at $102.40 from where a sharp downside move was initiated.
The price declined below a few important support levels such as $90.00 and $80.00. There was even a break below a major bullish trend line with support at $94.00 on the 2-hours chart of LTC/USD.
The pair traded as low as $70.23 and tested the 100 simple moving average (2-hour). It found strong buying interest near $70.00 and started a sharp recovery. The price moved above the 50% Fib retracement level of the last decline from the $102.40 high to $70.23 low.
However, the upside move was protected by the $90.00-92.00 resistance levels. It seems like the 61.8% Fib retracement level of the last decline from the $102.40 high to $70.23 low is acting as a barrier for further recoveries.
The price might once again move down towards $84.00, 100 simple moving average (2-hour) and a bullish trend line with support at $83.00 on the same chart. As long as the pair is above the $80.00 handle and the 100 SMA, it might recover further and remains in an uptrend.
On the upside, the $92.00 level is an immediate resistance followed by the $100.00 level. The 2-hours RSI for LTC/USD is now well below 50 and pointing short-term weakness in the price towards $86.00-84.00.