Litecoin looks set for a bearish move, falling below $60

Litecoin looks set to fall below the $60 mark, after being bullish for the past one week. Starting from August 12, the crypto formed support at the $51 mark and retested the support on the 13th August, which set the crypto on an upward trend in the next five days that followed.

4-hour Litecoin chart analysis

A strong bullish move started on the 13th after the retest of the support and the crypto reached new highs of 68.73. However, the crypto found resistance on the $68 dollar region, retested the region, and failed to break away with another strong bullish move.

In the last two days, the cryptocurrency has traded within the range of $63 to $68, without forming any distinct patterns that would confirm a trend. The upcoming trend, however, can be confirmed using the daily charts, which paints a different picture of where the next move on this cryptocurrency is headed.

Daily Litecoin chart analysis

The daily chart has a more complete picture of where the crypto is headed, filtering the noise from the 4-hour charts. The daily charts have three main analytic points that seem to confirm that Litecoin may be starting a bearish move below $60.

The first analysis is the support and resistance, and the daily charts show that the cryptocurrency is coming out of resistance in the $68 region. The chart shows that in the last two days, the market has also had a short bias, thereby confirming that the crypto may be headed below the $60 mark and may end up all the way down to the $51 support region.

The market is also in an ascending channel, which indicates that the price had touched the upper channel line twice and failed to have a breakout for a bullish move. The upper channel line has now turned to a resistance trendline and having failed to break out in the last two attempts, the technicals show that it might be the onset of a strong bearish move that will move below the $60 and might end up hitting below the $55 mark.

The graph also shows that the 14 days moving RSI is already in the overbought region. In both the 4-hour charts and the daily chart. The realignment of this indicator spells a possibility of a strong sell, which will result in the crypto falling below the $60.