- Litecoin has formed a triangle pattern on the 4-hour chart pending a breakout.
- LTC/USD is poised for retracement above $60.00 after consolidation.
Litecoin is a sitting duck risk being preyed upon by the bears who are hungry for blood following the widespread consolidation for more than a week now. In fact, the bulls have maintained control of the price with LTC/USD trading above the ascending trendline support. However, the buyers seem to have run out of power to stage a comeback above $60.00.
The upside retracement from mid-September came into contact with $65.00 but could not correct any further as the bears bit at the bulls towards the end of the month. October continues to be the month of consolidation not only for Litecoin but also for the majority of the digital assets. Fundamentals of technical analysis say that following an extended consolidation a breakout is usually around the corner. In addition, Litecoin has formed a triangle pattern on the 4-hour chart pending a breakout that is likely to retest break the resistance at $65.
Looking at the chart, Litecoin is bullish in the near-term but a medium term bear trendline is likely to hold the crypto down. The MACD is ranging above the mean line while the RSI is at 50 percent. Both of these indicators show that Litecoin has the ability to stay above the short-term support at $58.00 and event break above 60.00. A subsequent break from the triangle resistance is bound to test the $70.00 level.