FxNews – In today’s Litecoin technical analysis, we observe a notable bounce following the pair’s interaction with the 61.8% Fibonacci retracement level. LTCUSD is currently testing the $70 resistance level, which coincides with the 38.2% Fibonacci level. This demand zone is further reinforced by the Ichimoku cloud. As illustrated on the 4-hour chart, the bulls have failed to close above this demand zone.
In our previous Litecoin technical analysis, we mentioned that the 38.2% Fibonacci level presents a decent demand area to consider going short on the pair. That analysis still holds, and we expect the pair to continue its downward trend, reinforced by the bearish flag pattern.
This Litecoin technical analysis will be invalidated if the price crosses above the cloud and stabilizes itself beyond $72.
J.J Edwards is a finance expert with 15+ years in forex, hedge funds, trading systems, and market analysis.