Litecoin Price Prediction: LTC/USD is looking at $50 after a significant breakout attempt – Confluence Detector
- Litecoin is up by 2% at the time of writing following the steps of other major cryptocurrencies.
- LTC/USD is trading above the daily 12-EMA again and it’s eying up to $50.
Litecoin has just experienced a significant bull break, around a 2% price surge but was rejected at $47. Let’s take a look at the next resistance levels for Litecoin on its way to $50.
LTC/USD faces some opposition at around $46.91 where the previous daily high and the upper Bollinger Band on the 4-hour chart are converging. Of course the $47 resistance level and $47.24, the previous high on the 4-hour chart.
Litecoin is currently trading around a significant area of support. The area between $46.59 and $47.67 is fairly strong with the SMA200 on the hourly and the SMA50 on the 4-hour chart, as well as, the 38.2% Fibonacci on the weekly and the SMA10 on the 15-minute chart. Other than that, Litecoin can look for previous daily lows for deeper support levels.
Confluence Detector
The Confluence Detector finds exciting opportunities using Technical Confluences. The TC is a tool to locate and point out those price levels where there is a congestion of indicators, moving averages, Fibonacci levels, Pivot Points, etc. Knowing where these congestion points are located is very useful for the trader, and can be used as a basis for different strategies.
This tool assigns a certain amount of “weight” to each indicator, and this “weight” can influence adjacent price levels. These weightings mean that one price level without any indicator or moving average but under the influence of two “strongly weighted” levels accumulate more resistance than their neighbors. In these cases, the tool signals resistance in apparently empty areas.
Author
Lorenzo Stroe
Independent Analyst
Lorenzo is an experienced Technical Analyst and Content Writer who has been working in the cryptocurrency industry since 2012. He also has a passion for trading.
