04.02.202115:08 Forex Analysis & Reviews: Litecoin likely to rebound

Yesterday, Litecoin did not bounce off from the strong support level of 146.04 after its breakdown. At the same time, the growth in the area of 146.04 - 171.25 was stopped by the intermediate level of 151.83 (dotted line).

Today, following bitcoin, altcoins corrected downwards. At the time of writing this article, LTC/USD reached the support level of 146.04. An attempt at a false breakout of the horizontal shadow on the 4H chart create prerequisites for further recovery of the price.

Thus, there is a possibility of an upward rebound. Therefore, it can be a signal for long deals. A risky scenario for entering the market is to buy from the current values with a stop for the shadow of the previous price. The nearest target for growth will be yesterday's highs near the local resistance level of 151.83.

Cautious traders should wait for a more distinct rebound of LTC/USD as it will confirm that the pair will consolidate near the support level of 146.04. However, there is a risk of losing the right moment as well as part of the profit, getting a less favorable ratio of stop and profit in the trade. What to choose? I think that we risk it in any case. If we enter the market now, we will place a small stop. In the extreme case, when the horizontal level of 146.04 is broken and the pair reverses upwards, it will be possible to re-open long deals.

An alternative scenario would be a breakdown of the support level of 146.04. If LTC/USD consolidates below this level, it will decline to the nearest target at the horizontal level of 135.89.