Litecoin Bulls Still Sleeping as Bearish Break Approaches

December 9, 2019 11:36 PM UTC

Litecoin continues to be significantly weaker than the rest of the major cryptocurrencies and it’s close to a bear break. The digital asset is currently trading at $44.43, just one dollar above the support level at $43.71.

The bulls have been unable to break above the 12-period EMA on the daily chart after 3 attempts. Finally, the bears took advantage of the failed attempts and saw a decent bear break today of around 2.5%

The RSI, however, continues to be quite low and could slow down the bears. Other cryptos like Bitcoin are still far away from a bear break as they look to set a daily equilibrium pattern. If Bitcoin and others hold, a Litecoin bear break could be dangerous as it might not get enough continuation and bears can get trapped.

Longer Timeframes

The weekly chart has been in a downtrend for the second half of 2019 and continues to favor the bears. There is a bear flag in play right now as the bears are looking to confirm it with a daily bear break. The RSI remains at really low levels and trading volume has significantly decreased over the past 10 weeks.

The monthly chart is quite similar to Bitcoin’s chart as the bulls are looking to set a higher low compared to $22.17. Unfortunately, a bearish EMA cross is on the way unless the bulls can significantly change the momentum. The trading volume has been in favor of the bulls and the overall long term for Litecoin remains bullish.

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