LTCUSD produced two consecutive bearish daily candles. Thus, it seems bearish on the daily chart, but the level of support where the price had a bounce earlier is not too far away. This might held the sellers back from selling LTCUSD aggressively as far as the daily chart is concerned. Nevertheless, one of the daily candles tried to make an upside breakout which ended up being a false breakout. That may make the sellers be hopeful with LTCUSD. Let’s have a look at the daily LTCUSD chart.
The Daily Chart
The level of 100.40 got breached by the arrowed daily candle. However, the very next candle closed below that breakout level making that a false breakout. A false breakout usually attracts more traders. In this case, it has attracted the sellers since it was a false attempt to make an upside breakout. Consequently, yesterday’s candle came out as a bearish candle. Today’s intraday price action has been bearish so far. Intraday breakout at yesterday’s lowest low would attract the sellers to go short on LTCUSD today. Let us have a look at the H4- LTCUSD chart.
The H4 Chart
The level of 95.30 at which the price had a bounce earlier got breached by an H4 bearish candle. The price had a consolidation and heading towards its support level. An H4 breakout at the level of 90.60 may attract the sellers to go short on LTCUSD. The next level of support may come at the level of 77.40. Considering the H4 chart the risk and reward ratio looks lucrative.
The Bottom Line
The daily and the H4 chart look bearish. The sellers may dominate in LTCUSD for a day or two. It all depends on the breakout at yesterday’s lowest low though. If there is no downside breakout, the price may get choppier. Let us wait for the price to find out what it does in the end.