Litecoin Retreats Today, After Bouncing off the 50 Daily SMA This Week

The support in Litecoin has held again and the 50 SMA sent it higher again

Skerdian Meta•Friday, February 5, 2021•1 min read

Litecoin surged to $ 174 by the second week of January. It joined the strong bullish trend in the crypto market late, in the middle of December last year, but made up for the delay with some major gains for about a month.

Then it made a strong retreat in January after the big surge, following the pullback of the rest of the crypto market. The 20 SMA (gray) initially provided support on the daily chart at around $ 130, and we saw a bounce above $ 160.

But after the upside-down daily pin candlestick, which is a bearish reversing signal after the bounce, LITECOIN reversed back down, but the support at $ 130 twice more, and the 50 SMA (yellow) once, caught up with the price, and yesterday, the LTC/USD bounced higher, to $ 156.

Today, we are seeing a pullback down, but buyers remain in charge overall, so we will try to open a buy signal if the retreat takes Litecoin back to the 50 SMA and a bullish reversing pattern forms down there. At the moment, let’s observe the price action and see how far this retreat will go.

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ABOUT THE AUTHOR See More

Skerdian Meta

Lead Analyst

Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.