According to the CryptoWzrd daily updateLitecoin (LTC) ended the day higher, closely tracking overall Bitcoin market sentiment. Maintaining above $75.20 maintains a positive outlook, a break below this level would indicate bearish pressure. Conversely, a retest of resistance at $79.60 combined with signs of weakness could represent a potential shorting opportunity.
Litecoin mirrors Bitcoin’s dynamics at the daily close
Based on CryptoWzrd analysis, both Litecoin daily candles and the LTC/BTC indicator closed in a bullish orientation today, largely reflecting the positive sentiment established by Bitcoin. However, the analyst cautioned that for the LTC/BTC pair to confirm a sustained bullish turn, it needs to continue printing more bullish daily candles from its current location.
CryptoWzrd emphasized that Litecoin’s overall movement remains largely tied to the overall Bitcoin market sentiment. For Litecoin, the immediate key to maintaining its favorable outlook is to stay above the $80 level. This price point is crucial as it keeps the asset firmly in positive territory and above the critical support line.
On the other hand, the analyst warned that a decisive break and close below the $80 support level will immediately change the outlook to bearish. Such a failure would confirm further declines heading towards the next significant support level, which is expected to be around $68. The value of $80 therefore constitutes a structural line separating positive and negative dynamics.
With the weekend in mind, the analyst’s attention will be focused on lower time frame charts in search of quick scalping opportunities for the next day. Despite this tactical change, he advises maintaining reasonable expectations, acknowledging that low-volume weekend sessions often limit decisive moves and require caution.
Intraday volatility sets the stage for key trades
CryptoWzrd added to his analysis by noting that the intraday chart for LTC was quite volatile, requiring a calculated approach to entries. He outlined a clearly positive scenario if the price successfully tests the key support level of $75.20 and then prints a noticeable bullish reversal pattern.
However, the analyst noted that a decisive break below the support at $75.20 would invalidate any hope for growth and signal a brief continuation of the trade. Another scenario is to move higher to test the resistance level at $79.60, where a clear bear reversal pattern would confirm rejection and trigger a brief entry.
Basically, the strategy involves waiting for the price to confirm its direction within certain limits. CryptoWzrd concluded by advising investors to remain patient and wait for the next mature trading opportunity to fully develop and confirm the intended direction before taking a position.
