LTC Price Analysis: Hidden Bearish Divergence Shows We May See Lower Prices This Week
The Litecoin (LTC) price, unlike most top cryptocurrencies has not been able to breach its June ’21 high [$197.8]. Although some analysts may argue that a break above the July inside bar resistance [$148.1] may be sufficient for a halt of the correction phase, we still feel a need to probe into the lower 4HR time frame for hints into dominant trend direction and likely scenarios.
Let’s dive into it.
The LTCUSDT started a bearish campaign on the 4HR time frame after signaling a hidden bearish divergence on 16 September 08:00, sending the price spiraling down by 24%.
It’s clear the daily time frame shows strong bearish presence, as the on-chart RSI viewed from the 4HR time frame breaks below hidden inside bar support while above the RSI level-75 on 16 September 08:00 and 23 September 20:00.
Efforts by the bulls to restore the uptrend via a bullish divergence on 22 September ’21 04:00 and 26 September 12:00 was not sufficient for the selling pressure.
Recent hidden bearish divergence on 27 September 04:00 shows that we could see lower prices this week.
As the LTC price slowly rise at press time and the RSI approach the level-75, we anticipate a price slump that could exceed the recent support level at $139.70. However, a price surge above the bearish divergence resistance could set the pace for a bullish comeback, as a peek into the daily chart suggest a regular bullish divergence.