Litecoin Price Technical Analysis for 4/8/2015 – Dead Cat Bounce

Litecoin rises more than 5 percent tracking the relief rally in Bitcoin. However, the cryptocurrency is expected to face renewed bearish momentum near $4.500.

In my previous Litecoin technical analysis, I mentioned that Litecoin is in the strong grip of the bears. I maintain my bearish view on the cryptocurrency and see significant price advances being sold into.

Litecoin price chart

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Technically, things look bearish for Litecoin and we should see $3.000 this month.

Litecoin Chart Structure – There hasn’t been a meaningful change in the chart structure, which is that of a lower top, lower bottom.

Fibonacci Retracements – The 23.6% Fibonacci retracement of $4.471 will be a major hurdle to cross.

Moving Average Convergence Divergence – The MACD is sticking close to the Signal Line after a bearish crossover. The Histogram is negative at -0.0706 while the MACD is at 0.0724 and the Signal Line is at 0.1430.

Momentum – The Momentum is flat-to-negative with a value of -0.2933.

Money Flow Index – The current value of the MFI is strong at 63.6829.

Relative Strength Index – The RSI provides no significant information with its value of 50.3860.

Conclusion

Now that all the technical considerations have been laid out, here is what I infer.

Litecoin’s recent consolidation region of $4.500-$4.550 will prove to be a strong resistance for the bulls. Add to it the pressure posed by the 23.6% Fibonacci retracement level of $4.471, and things become extremely tough. So, if market participants are building long positions, consider liquidating them at the mentioned resistance levels, and create fresh short positions for a target of sub-$4.000 by placing a stop-loss above $4.500.

Market participants are also advised to stay abreast with the latest movements in the Bitcoin market, which is leading the price action in Litecoin. And, Bitcoin looks weak!

Source

via Latest Bitcoin News | Crypto News | Mining Reviews – Bitcoins Channel http://ift.tt/1IhSxCi

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