According to the CryptoWzrd blog updateLitecoin (LTC) closed the day on a bullish note, closely tracking Bitcoin’s overall market sentiment. While a hold above $75.20 keeps the outlook positive, a break below this level would signal bearish pressure. Conversely, a retest of $79.60 resistance combined with signs of weakness could present a potential opportunity to short.
Litecoin mirrors Bitcoin’s momentum in the daily close
Based on CryptoWzrd analysis, daily Litecoin candles and the LTC/BTC ratio closed in a bullish direction today, largely reflecting the positive sentiment set by Bitcoin. However, the analyst cautioned that in order for the LTC/BTC pair to confirm a permanent bullish turn, it must continue to print more bullish daily candles from its current location.
CryptoWzrd emphasized that the overall movement of Litecoin remains highly correlated with the general sentiment of the Bitcoin market. For Litecoin, the immediate key to maintaining a favorable outlook is holding above the $80 level. This price point is crucial as it keeps the asset firmly within positive territory and above a critical support line.
Conversely, the analyst cautioned that a decisive breakout and close below the $80 support would immediately change the outlook to bearish. Such a failure would confirm further downside, targeting the next significant support level, which is projected to be around $68. This $80 mark is therefore a structural line that separates positive and negative momentum.
With the weekend in mind, the analyst’s current trading focus will shift to the lower time frame charts in search of quick scalp opportunities for the next day. Despite this tactical shift, he advises maintaining rational expectations, acknowledging that low-liquidity weekend sessions often limit decisive moves and require caution.
Intraday volatility sets the stage for key trades
CryptoWzrd added to his analysis noting that the intraday chart for LTC was quite volatile, requiring a calculated approach to entries. It outlined a clear positive scenario if the price were to successfully retest the key support level of $75.20 and then proceed to print a visible bullish reversal pattern.
However, the analyst noted that a decisive break below the $75.20 support would nullify any upside hopes and signal a short resumption of trading. Another scenario involves a move up to test the $79.60 resistance level, where a clear bearish reversal pattern would confirm a bounce and trigger a short entry.
Basically, the strategy relies on waiting for the price to confirm its direction at defined limits. CryptoWzrd concluded by advising traders to be patient and wait for the next ripe trading opportunity to fully develop and confirm the intended direction before committing to a position.
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