Litecoin falling to $230

As suggested in our last idea, Litecoin retraced to the 0.789 fibonacci and found support at $210. After a big retracement, price has a tendency to retrace to about the half-way point of the drop. Price was able to rally back to $260, however, we expect price to fall again for the first half of May.

However, this could be a great buying opportunity assuming the following levels hold:

$230 - the Daily 50 MA
If support is found at $230, it would complete an inverse head and shoulders and we can expect a retest of $300


$210 - Our lower green trendline has provided support for previous corrections
If support is found at $210, we can expect a very strong push to new highs. The lower the correction, the more liquidity is generated in the market to help push the price to new highs as buyers who were stopped out in a trade re enter the market.


Below $210 - if price falls decisively below $210 we could see a large market correction to the weekly 20MA which is currently at $188

Comment:

Bullish momentum has returned and price is holding above the Daily 20 MA. This is VERY bullish as hypothetically price will continue to bounce off the Daily 20 MA. The best entry is on the next bounce off the Daily 20 MA, and bullish momentum is invalidated if price closes below the Daily 20 MA

Comment:

Support was found at the 4 hour 20 MA and it looks like LTC is going to attempt a retest of 300 soon.

Bullish momentum is invalidated if price closes below the 4 hour 20 MA.