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Litecoin (LTC) Could See a 15% Crash.

March 22, 2021

Talking Points:

● LTC has created a head and shoulders pattern on the 4-hour chart suggesting a bearish outlook.

● If LTC breaks through the neckline at 191.86 USD, a 15% fall towards 160 USD could be on the cards.

● On the flip side, a climb above the demand barrier leading to a strong close over 208 USD could halt the bearish sentiment.

LTC has hit a demand barrier several times over the last couple of weeks. Therefore, a downswing from this level could be a disaster for LTC.

LTC Is at a Crossroads.

LTC has been in an extended period of consolidation since the 9th of March. During this timeframe, LTC has had three distinctive peaks, with the middle one being the highest known as the “head” and the other two peaks of similar heights are known as the “shoulders.”

The lows share a common level at 191.86 USD, known as the “neckline.” This pattern predicts a 16.86% downswing, calculated by measuring the distance between the head and the neckline’s peak and adding it to the breakout point at 191.86 USD.

Adding to the outlook is the Momentum Reversal Indicator’s (MRI) breakout line at 190 USD which is within the neckline’s territory. Therefore, investors will need to wait for a strong 4-hour candlestick close below 190 USD as a confirmation.

If the downswing happens, LTC’s price will fall by 16.86% to 159.86 USD, which coincides with another breakout line around the same level.

LTC/USDT 4-Hour Chart:

As the confirmation for the head and shoulders pattern will only come following the neckline’s downswing, a rebound off this point may put a halt to the bearish viewpoint.

On the flip side, if a rebound at this level drives a strong candlestick close over 208.13 USD, it would then create a higher high and cancel out the bearish momentum. This could lead to LTC rallying by 10% towards 227.88 USD.

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