What interests me about this pair is the coincidence of fundamental and technical factors. Fundamentally, Charlie Lee announced two LTC supportive payment systems dubbed Lite Pay and Lite Pal and this definitely buoyed prices, in the process lifting them above $140 by end of last week.
Technically, we have seen two bear candlesticks with barely no sell pressure and a long lower wick signaling buyers. Even though the same was replicated the week before last, the depreciation that followed slashed LTC and drove it to key support level.
Of course, we have seen how our main flexible line was broken but what is important to us is the reaction between $100 and $110. That is where buyers rejected lower prices and we are seeing the same pattern being replicated this week.
Even though prices might actually recover, we can be potentially looking at selling opportunities at every high and that means we have to wait for buyers to test the 1st Fibonacci extension at around $160 or middle BB on the lower side and watch what happens at that resistance zone.
In the daily chart, I’m holding my bullish guns and I will pull buy triggers if and only if prices close above $170 or the 2nd Fibonacci retracement level in this time frame.
Otherwise, we cannot rule out chances of consolidation bound between $110 and $180 in the next session.
What is imperative though is the reaction at the lower limit of this $70 range. Any close below $110, and sellers could aim at $50 or November 2017 lows for a 100% recovery.
The reaction at around $100 is definitely what buyers want to see. Besides the double bar bull reversal pattern which triggered higher highs, a double bottom was confirmed.
In my view, if this pressure is to be sustained then we need buyers to push and close above the minor resistance trend line as marked in the chart. From there, bulls may muster a close above $180 and that is where we can consider going long.