Litecoin price has a weak spot that could implode with LTC diving 15%
|- Litecoin price is trying to recover from its declining price action this week.
- LTC bulls squeeze to the upside.
- With a slim trendline exposed on the downside, a break would mean a big blow for bulls.
Litecoin (LTC) price sees bulls trying to get back above the level they defaulted on last Monday and have been unable to reclaim all week. Often no means no, but in this case bulls have not yet understood the message and are still trying to break back above the 200-day Simple Moving Average after bears pierced through it. With lower highs, a squeeze is ongoing. Once broken, however, the road is open for bears to head 15% lower.
Litecoin price sees bulls losing control of $70 in order to get back above $80
Litecoin price sees bulls creating a bullish grind higher, resulting in a squeeze to the upside against the 200-day SMA. Throughout the week, bulls have tried to reclaim it but failed each time. Meanwhile, a small ascending trendline is forming with higher lows, which exposes bulls in a large way.
LTC could see bears going in for the kill by triggering all the stops from bulls that are being placed just below this ascending trendline. This will trigger, in its turn, a wave of sell orders and could see LTC quickly spiral toward $73.50. Once that monthly S2 support level is broken, expect to see another leg lower toward $65 that prints a new low for 2023.
LTC/USD 4H-chart
The squeeze could work though and push LTC above the 200-day SMA near $82. Once that has happened, a range trade is the next setup with the 55-day SMA at $90 looking very attractive. Wait for firm confirmation before getting involved with a clear break above and a test for support at that 200-day SMA before enjoying a 10% rally.
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