While Bitcoin has appreciated in value considerably since the start of December, Litecoin – which usually correlates closely to Bitcoin – has been trading in a much more subdued manner. Why? Lots of pivot zones to chew through. In my previous Litecoin technical analysis from last week, I explained the significance of the $3.46 pivot area and why the market might have some trouble getting over that level. This zone has become even more important now. The market has used this level as support about seven times since the start of December, and also twice as resistance.
There is also another minor pivot zone that should be watched. The $3.575 area briefly held up price at the end of November, just prior to the big sell-off. This level was then used as resistance about three times in the past few days. Price blasted through $3.575 today, so this pivot is very likely to now act as support and could be used by the market to kick-off another rally. However, if price closes under $3.575, then the odds of a drop to $3.46 increase dramatically.
Disclaimer: This is not trading/investment advice!
Image Source: 1
Chart Source: https://www.okcoin.com/market.do?symbol=1
If you liked this article follow us on twitter @themerklenews and make sure to subscribe to our newsletter to receive the latest bitcoin and altcoin price analysis and the latest cryptocurrency news.