Litecoin price analysis: LTC/USD retreats back within the short-term channel

LTC/USD has retreated from the recent high, still above $74.00.
The strong short-term support is created on approach to $70.50.

Tanya Abrosimova Independent Analyst

Litecoin has retraced from Wednesday's high of $79.15 to trade at $74.37 by the time of writing. The fifth-largest coin with the current market value of $4.7 billion has lost nearly 2% of its value in recent 24 hours and decreased by 4.5% since the beginning of the day.

Litecoin’s technical picture

Litecoin has returned inside a short-term upside channel with the upper border currently at $76.70. This area serves as a short-term bull’s target that separates us from the next resistance of $78.78 ( the lower line of four-hour Bollinger Band) and the recent high of $79.15. Once it is reached, LTC/USD may extend the correction towards psychological $80.0.

On the downside, initial support is created by SMA50 (Simple Moving Average) four-hour at $71.40. Once it is broken, the sell-off may be extended with the next focus on a stronger support zone $70.50-$70.00 with a cluster of technical indicators including SMA100 (Simple Moving Average) four-hour, SMA200 four-hour, the lower line of one-hour Bollinger Band and the lower boundary of the above-said channel.