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With price pressures pressed against a key resistance level, Litecoin has closed the daily session on ‘bullish note of bullish momentum and is giving new short-term momentum. Now that $57 is now the immediate barrier, an aggressive breakout and sustained hold above this zone could open the door for a second leg higher (and possibly accelerate upside toward the mid-$60s) faster.
Bullish Daily Close Signals Early Strength
The session was closed with a bullish daily candle, mostly reflecting Bitcoin’s upward movement, according to Crypto analyst CryptoWzrd who provides an everyday technical outlook on Litecoin. While the good close means that short-term momentum is boosting, “the expert cautioned that further market conditions will require confirmation from more of these factors,” particularly LTCBTC pair.
Related Reading: Litecoin Structure Intact, But $63 Remains The Line Bulls Must Defend
Despite the fact that LTCBTC closed indecisively, while Litecoin printed a positive candle (the “LTC”), it was not so clear whether to be afraid of being less confident about how strong litecoine is relative against Bitcoin. This will likely be a shift towards clear bullish sentiment in LTCBTC, which would confirm capital rotation and stronger underlying demand for $LTC that is expected to sustain sustained upside.
A structural point of view, CrytoWzrd said that one more strong bullish daily candle from the current level is needed to validate a breakout above the daily lower-high trendline. In the event of such confirmation Litecoin could become more established bullish phase, with its $68 resistance level becoming one of the next key upside targets above the $56 zone. For trend continuation, a strong and sustained move beyond resistance would further strengthen the case.
Analyst plans to focus on lower-timeframe setups, especially over the weekend until that higher-term breakout is confirmed. His strategy is still tactical, looking for quick scalp opportunities while awaiting a more mature chart structure before making larger directional trades.
$57: Litecoin Intraday Decision Zone
However, the analyst continued ‘Litecoin’s intraday structure is now challenging against the key $57 resistance zone — an area that has become a short-term decision point for price. This would be a clean, sustained hold above this area that would signal strength and open the way toward $64, with potential for further expansion if momentum accelerates.
Related Reading: Litecoin 2M Bollinger Band Width Hits New Lows, CMT-Certified Analyst Reveals What It Means
But just wicking above resistance will not be enough, he said. If you need a bullish structure, which is stable and has been well supported by increasing volume and constructive follow-through, before considering if it’s long. A scathing confirmation would mean that buyers are in control rather than the move being a short-term liquidity sweep of goods.
He said that he also noted that Bitcoin’s direction will likely be the basis for this breakout to gain traction. Litecoin still follows more of the same market sentiment, so BTC’s strength could be used as an engine for further gains. But patience is necessary before engaging in the next trade until a mature and well-defined intraday structure forms are developed.
Featured image from iStock, chart from Tradingview.com
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