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Litecoin Struggles to Break Above $71; Quick Outlook

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Arslan is an expert live webinar speaker and derivatives analyst, specializing in cryptocurrencies, Forex, commodities, and indices. He holds an MBA in Finance and an MPhil in Behavioral Finance from the University of Gujrat (UOG), Pakistan. With many years of experience in cryptocurrency and Forex trading, Arslan currently focuses on cryptocurrency price predictions and forecasts. Arslan has previously worked with several brokerage firms’ Forex and cryptocurrency trading teams, managing client exposure risk. Arslan has worked at CAPEX.com and NatureForex.com, among others.
By Arslan Ali Butt
author
Arslan is an expert live webinar speaker and derivatives analyst, specializing in cryptocurrencies, Forex, commodities, and indices. He holds an MBA in Finance and an MPhil in Behavioral Finance from the University of Gujrat (UOG), Pakistan. With many years of experience in cryptocurrency and Forex trading, Arslan currently focuses on cryptocurrency price predictions and forecasts. Arslan has previously worked with several brokerage firms’ Forex and cryptocurrency trading teams, managing client exposure risk. Arslan has worked at CAPEX.com and NatureForex.com, among others.
on January 11, 2024 | 2 min
Updated on Jan 11, 2024
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  • LTC fails to break above $71 as SEC approves 11 spot bitcoin ETFs
  • Litecoin is in a short-term bullish trend, trading above the 50 EMA and the MACD line
  • LTC may test the resistance at $71.95 and aim for $74.34, or fall below the support at $55.99 and drop to $37.84

Litecoin, the cryptocurrency that was created as a faster and cheaper alternative to bitcoin, failed to break above $71 on Wednesday, as the US Securities and Exchange Commission (SEC) approved 11 spot bitcoin exchange-traded funds (ETFs), which track the actual price of the digital asset. The approval came after a fake tweet from the SEC’s official account on Tuesday claimed that the regulator had authorized a bitcoin futures ETF, sending a shockwave through the crypto market. The false tweet, which was later deleted, caused a brief spike in bitcoin’s price, which in turn lifted other cryptocurrencies, including Litecoin.

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LTC/USD Price Chart
LTC/USD Price Chart – Source: Tradingview

Litecoin Price Prediction: Technical Outlook

According to the 4-hour chart, Litecoin is trading below the pivot point, which acts as a support and resistance level, at $65.91. The pivot point is calculated based on the previous day’s high, low, and close prices, and it helps to determine the overall market trend. The immediate resistance is at $74.34, which is the round number and the previous high of January 5. The next resistance is at $84.26, which is the 61.8% Fibonacci retracement level of the downward move from the November 10 high of $247.77 to the December 4 low of $49.63.

 

The Fibonacci retracement levels are based on the mathematical sequence that shows the ratio of successive numbers, and they help to identify potential reversal points in the market. The next resistance is at $92.49, which is the 78.6% Fibonacci retracement level of the same downward move.

The immediate support is at $55.99, which is the 38.2% Fibonacci retracement level of the same downward move. The next support is at $47.76, which is the 23.6% Fibonacci retracement level of the same downward move. The next support is at $37.84, which is the previous low of December 4.

 

The relative strength index (RSI), which measures the momentum of price movements, is at 68, indicating a balanced market. The moving average convergence divergence (MACD), which shows the relationship between two moving averages of prices, is at 0.610, indicating a positive trend. The MACD line is the difference between a 12-period and a 26-period exponential moving average (EMA), and the signal line is a 9-period EMA of the MACD line. The MACD line has crossed above the signal line, suggesting potential upward momentum.

 

The 50-day exponential moving average (EMA), which smooths out price fluctuations, is at $67.74, slightly above the current price. This indicates that Litecoin is in a short-term bullish trend, as it is trading above the 50 EMA, which acts as a dynamic support and resistance level.

 

The chart also shows that Litecoin is facing a downward trendline, which is a bearish signal. This means that Litecoin has failed to break above the trendline, which extends from the November 10 high of $247.77 to the January 5 high of $74.34. The trendline is currently acting as a resistance at $71.95, which is also the previous high of January 9. If Litecoin can break above this level, it may open the door for further gains towards the $74.34 level, which is the previous high of January 5 and the immediate resistance.

 

However, if Litecoin fails to break above the trendline, it may face some downward pressure and fall below the $65.91 level, which is the pivot point and the immediate support. The overall trend for Litecoin is bearish, as it is trading below the pivot point and the downward trendline, and has failed to break above the $71.95 level.

Stay tuned for more updates!

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About Arslan Ali Butt
Arslan is an expert live webinar speaker and derivatives analyst, specializing in cryptocurrencies, Forex, commodities, and indices. He holds an MBA in Finance and an MPhil in Behavioral Finance from the University of Gujrat (UOG), Pakistan. With many years of experience in cryptocurrency and Forex trading, Arslan currently focuses on cryptocurrency price predictions and forecasts. Arslan has previously worked with several brokerage firms’ Forex and cryptocurrency trading teams, managing client exposure risk. Arslan has worked at CAPEX.com and NatureForex.com, among others.
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