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LTCUSD: Is an Upward Daily Breakout Possible?

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LTCUSD has been having an upward correction on the daily chart. The price was down-trending by obeying a trend line. Yesterday’s daily candle closed right at the resistance of the trend line. Today’s intraday price action has been bearish. A breakout at the trend line may attract the buyers again to go long. On the other hand, if the trend line is held by today’s daily candle, then the price might head towards the South.

Let us have a look at the Daily-LTCUSD chart.

The Daily Chart

The daily price had rejections three times at the drawn trend line. Yesterday’s daily candle closed within the resistance of the trend line as well. If the price continues to go towards the North and today’s daily candle closes above the trend line’s resistance, then the buyers might push the price towards the North. If the price is held, however by the trend line, then the sellers will have the upper hand.

Let us find out what the price action of the H4 chart suggests.

The H4 Chart

The H4 chart shows that the price has been up trending. It went up to the level of 99.95 and started having a pullback. The level of 92.25 has the potential to be a level of support. If the level is held and it produces an H4 bullish engulfing candle, the H4 traders may start buying LTCUSD to grab some green pips.

The Bottom Line

The H4 chart alone looks good for the buyers, but the daily chart might hold them back. The trend line on the daily chart is a strong one which must not be ignored by the H4 buyers. Another thing is all the cryptocurrencies have been ranging on the daily charts. Less liquidity makes them sluggish. This is how traders’ patience is tested. When things are like that, traders must not lose their patience.

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