The cryptocurrency market pulled back after a strong weekend, with further losses possible
The cryptocurrency market retreated yesterday following a robust rally over the past several days. Bitcoin (BTC) and other leading cryptocurrencies registered losses in the last 24 hours. After climbing above $47,000, BTC fell about 3.6% and now trades near the $45,000 area.
Ether neared $3,300 but has since lost roughly 4% and now trades just above $3,100 per coin. Litecoin also slipped 3.6% yesterday, erasing the 1% gain it posted on Sunday. The decline followed an early-week surge on Monday when Litecoin approached the $190 mark.
However, LTC was unable to sustain that momentum and dropped to a low of $179 before the close of the day. LTC currently trades around $178 and could face additional downside if the broader market correction continues. Leading market analysts suggest that after several days of gains, a healthy correction was due.
For the $USD values, time to have a healthy correction, it seems.
That's good.
— Michaël van de Poppe (@CryptoMichNL) August 16, 2021
Litecoin price outlook
The 4-hour chart for the LTC/USDT pair looks bearish at the moment, mirroring the broader cryptocurrency market’s tone. Litecoin is currently trading around the 23.6% Fibonacci level near $178. To push higher, the cryptocurrency needs to break above this level and clear resistance at $182 to test the next significant resistance at $186.
4-hour LTC/USDT chart. Source: Coinalyze
If the market recovers from the recent correction and resumes its uptrend, LTC could attempt to reach resistance near $193. That level may be difficult to overcome without a strong market-wide rally.
Conversely, if LTC fails to hold the $178 level, bulls will need to defend the first key support at $174. Barring a broad market sell-off, Litecoin should be able to remain above support around $170.