The entire cryptocurrency market was in a brutal red last week, the price of most of the cryptocurrencies declined including Bitcoin, ethereum, bitcoin cash, Cardano and EOS. Litecoin broke it’s the resistance of $70 and traded below the $76.00 and $74.00 support levels.
The entire market was bleeding following the Tether-Bitfinex Saga, which adversely affected the market and pushes the price of all major currency down. While technical analyst crypto market will surge to further heights, but it’s collapsed drastically, but with the start of the new month, the bulls begin to rebound. The price of bitcoin has surged to $5400 mark again, as the whole crypto market is dominated by Bitcoin, all major cryptocurrencies gained their momentum.
On May 1, Litecoin was trading in the bear zone, the price was in a downward correction testing the $78 resistance level. On the 2-hours chart litecoin, the price rebounding upward move from the $68.81, it broke the $72.50 resistance. In addition, there was a break above the Fib retracement level of 76.4% of the last decline from the high of $ 76.04 to the low of $ 68.81. More importantly, the price broke an important downtrend line with resistance at $ 73.30 on the same chart.
The price is currently testing the resistance of $ 76.00, with potential for further profits. The current price action is very positive and it seems that the bulls can succeed in eliminating resistance levels of $ 76.00 and $ 76.50. The next stop for the bulls could be $ 80.00 or the extension level of 1,236 Fib for the last decline, from the maximum of $ 76.04 to the minimum of $ 68.81. If the price is resolved with a positive bias above $ 76.00 and $ 78.00, there is a possibility of an extended rise towards the $ 85.00 resistance level.
On the other hand, if there is no closing above $ 76.0, the price could cut profits and decrease toward support of $ 72.50 and the simple moving average of 25 (2 hours). In general, it seems that litecoin is currently being negotiated with positive price action and it seems that LTC could present a strong recovery above the key resistance of $ 80.00 in the short term.
On the positive side, if the support level of $ 76 is maintained, the price of the crypto will increase to retest resistance levels of $ 78 and $ 84. On the downside, if the bears break below $ 76, the price of the crypto will depreciate to a low level of $ 70.