Litecoin Follows Bitcoin’s Momentum, But Resistance at $79.60 Awaits

As per CryptoWzrd’s latest update, Litecoin (LTC) ended the day on a positive note, closely mirroring Bitcoin’s overall market behavior. While maintaining a position above $75.20 supports an optimistic outlook, falling below this threshold may indicate bearish pressure. On the other hand, a retest of the $79.60 resistance level, accompanied by signs of weakness, could create a potential shorting opportunity.

Key Takeaways

Litecoin is tracking Bitcoin closely with a bullish end to the day.
Staying above $75.20 is crucial for maintaining a positive outlook; a drop below signals risk.
The critical resistance level is at $79.60, which could provide shorting opportunities.
Analysts recommend cautious trading during volatile periods and stress the importance of confirming direction at key support and resistance levels.

Litecoin

Litecoin Mirrors Bitcoin’s Daily Movement

According to CryptoWzrd's analysis, both Litecoin's daily candles and the LTC/BTC ratio ended with a bullish trend today, reflecting the positive sentiment initiated by Bitcoin. However, the analyst cautioned that to confirm a sustained bullish trend for the LTC/BTC pair, it must consistently show more bullish daily candles from its current position.

CryptoWzrd highlighted that Litecoin’s price movements are significantly influenced by Bitcoin’s general market sentiment. To maintain a favorable outlook, Litecoin needs to stay above the $80 level, which is vital for keeping it within positive territory and above a crucial support line.

Litecoin
Source: Chart from CryptoWzrd on X

The analyst also pointed out that a decisive break and close below the $80 support would quickly change the outlook to bearish. Such a breakdown could validate further downward movement towards the next significant support level, estimated to be around $68. Thus, the $80 mark stands as the critical line that separates positive from negative momentum.

With the weekend approaching, the analyst’s immediate focus will shift to lower-timeframe charts to identify quick scalp trading opportunities for the day ahead. Despite this strategy adjustment, he stresses the importance of maintaining realistic expectations, recognizing that low liquidity during the weekend can restrict significant moves and calls for caution.

Intraday Volatility Prepares for Key Trades

CryptoWzrd further elaborated that the intraday chart for LTC has shown considerable volatility, necessitating a more thoughtful approach to trade entries. He outlined a favorable scenario if the price manages to successfully retest the key $75.20 support level and subsequently forms a clear bullish reversal pattern.

However, the analyst also indicated that breaking decisively below the $75.20 support would nullify the bullish outlook and indicate potential continuation of shorts. Another scenario to consider is a move upwards to test the $79.60 resistance level, where the formation of a bearish reversal pattern would validate rejection and trigger a short entry.

Ultimately, the trading strategy depends on waiting for the price to establish its direction at the defined levels. CryptoWzrd concluded by recommending patience, urging traders to await the next substantial trading opportunity to fully develop and confirm the intended direction before making any commitments.

Litecoin
LTC trading at $76 on the 1D chart | Source: LTCUSDT on Tradingview.com