Litecoin Price Prediction: LTC still stuck in bearish technical trade

Litecoin price and other major currencies jumped on news from Tesla's CEO.
Overall risk-on sentiment in the markets is creating a favorable tailwind for cryptocurrencies.
LTC is, however, still not able to break out of a bearish technical play.

Filip Lagaart FXStreet

Litecoin price and other cryptocurrencies got a lift from the positiveness that reemerged in markets after the sell-off last Monday. A few tweets from Elon Musk and Jack Dorsey helped to put the spotlight back on cryptocurrencies. Buying LTC now means that you need to be aware of a looming bull trap with Litecoin still under pressure from a downward technical play.

Litecoin price stuck in bearish triangle

Litecoin price got lifted to $104.17. That price level falls in line with the low from June 22. Buyers stepped in rapidly after general sentiment in the markets started to shift back to risk-on. Some tweets that went back and forth from Elon Musk and Jack Dorsey about a possible upcoming cryptocurrency event helped cryptocurrencies gain traction and have a day again with some profit.

LTC is not out of the woods though. To the upside, LTC still has the descending trend line that for this week would be near $122 to $123. A level to be aware of to the upside. On the downside, Litecoin price may see a complete pairing of the gains from yesterday, and LTC retests the $104.17 marker.

LTC/USD daily chart

If that would break to the downside, expect a fall beyond $100 before buyers step in again. Best case, Litecoin price can bounce off $94.43, which was a critical hand-over level on December 16. It was tested a few days later, but price action never came back down to these levels.

Buyers thus need to be aware of the descending trend line. If that breaks, expect more buyers coming in for more upside potential toward $130 just below the weekly pivot level.