Litecoin price analysis: LTC/USD upside hits a dead end

• Litecoin bears took over control pulling the price below $60.00 but $59.00 is a good anchor.
• LTC/US is trading in a contracting triangle pattern pending a breakout.

The bears increased thief grip on the market yesterday as Litecoin embarked on a downward roll from the week’s high at $63.85. Prior to that LTC/USD had made a nice upward movement from the primary support at $55.00. The price cleared the stubborn resistance at $60.00 – $61.00 and retraced steps towards the critical level at $64.00 but stalled forming a high at $63.85.

The declines during the afternoon (GMT) trading session yesterday smashed through the short-term support at $60 – $61.00 but came to a halt at the 23.6% Fib level with the last swing high of $63.85 and a low of $55.58. The bullish trendline and the hourly 100SMA anchored the price slightly below the Fib level.

The bulls swept in at this point and Litecoin pullback above $60.00. However, both the bearish trendline and the 61.8% Fib level of the drop from $63.85 to $55.87 are limiting the gains on the upside. The hourly 50SMA currently at $60.67 is also a significant hurdle towards the upper supply zones at $62.00 and $63.00.

Litecoin is also trading in a contracting triangle pattern pending a breakout. The trend is turning bearish, besides the stochastic is retracting from the oversold region. Looking at the chart, the price is likely to drop below $60.00. The bulls must ensure that the support at $59.00 is not broken. However, a break below the contracting triangle support will lead to more declines towards the primary support.

LTC/USD 1-hour chart