By Franklin Smith
- LTC price formed a complete bear trap following a swing low beneath the 22 January lows of $96.39.
- The resulting uptrend can take the alt high towards the hurdles around $117.8 and $124.09.
- A 4hr candlestick close beneath $91.61 will print a lower low and annul the bullish case.
Litecoin prices saw pullbacks after the token recorded a swift upside move. Price actions before the brief rally remain vital in determining trend reversals. For now, the LTC stance highlights a bullish outlook.
LTC Price to Recover
Litecoin price formed a range stretching between $153.9 and $96.39 from 17 January to 22 January. However, Litecoin gained 48% after a swing low on 22 January. The remarkable upswing had LTC forming another range, extending between $144 and $91.61.
The 24 February market fall saw the alt slicing previous swing lows, forming an MSB (Market Structure Break, and indicated further declines for Litecoin. Nevertheless, MSB is a manipulation technique and liquidity grab utilized by market makers to lure investors towards the wrong direction before higher highs.
The MSB had LTC price surging 25% and currently retraces to secure dependable support zones before revealing another upswing. Interested individuals might enter long positions at the current price, around $102.77, and anticipate higher rallies.
Litecoin’s price will meet the first hurdle around the 50% retracement zone near $117.80. Overcoming this hurdle will see the alt hitting the 62% retracement zone at $124.09. Such a move will mean a 20% increase in the alt’s price. Market players can book profits around either of the levels.
Contrarily, Litecoin’s failure to curb profit-booking will lead LTC to plummet towards the 22 January swing low of $96.39. Meanwhile, bulls need to absorb the selling momentum to prevent lower retests at $91.61.
A 4hr candle close under $91.61 will form a lower low and cancel Litecoin’s bullish thesis. Such a move will clear the path for further lows for the token.
For now, LTC reveals a bullish pattern, expecting a 20% upside move. That will see the asset exploring value levels of $124.09. Nevertheless, a 4hr candle close under $91.61 will print a lower low and ruin the bullish narrative.