Litecoin reversed its monthly gains over the weekend as the sixth-largest cryptocurrency came under downside pressure alongside the broader cryptocurrency market.
Litecoin price analysis shows that if the cryptocurrency needs to gain traction above the $66.00 level to encourage the notion that a technical bottom is in place.
Litecoin medium-term price trend
Litecoin came under pressure over the weekend as many top altcoins suffered heavy double-digit declines.
The decline happened despite bullish regulatory news from India and South Korea, and Bitcoin’s hash rate hitting a new all-time high.
Litecoin technical analysis shows that the cryptocurrency could stage a rebound towards the $75.00 level if bulls can send the pair back above the pivotal $66.00 level.
The daily time frame is showing that the $66.00 level is technically important for numerous reasons.
The neckline of a head and shoulders pattern is found at the $66.00 level alongside the LTC/USD pair’s 50-day moving average.
Key resistance above the $66.00 level is found at the $70.00, $72.50 and $77.00 levels, while key support is found at the $50.00 and $45.00 levels.
Litecoin short-term price trend
Litecoin technical analysis shows that the cryptocurrency has a short-term bearish bias while trading below the $71.00 level.
The lower time frames show that a large inverted head and shoulders pattern will form if prices start to trade towards the $65.80 area.
Looking at the upside potential of the bullish pattern, the LTC/USD pair could rally towards the $75.00 level.
It appears that short-term analysis is aligning with the medium-term and highlighting the $65.80 to $66.00 area as critical this week.
It is worth noting that a head and shoulders pattern is still valid on the lower time frames, with the $50.00 level the overall bearish target.
Litecoin technical summary
Litecoin technical analysis is showing that the cryptocurrency could rally towards the $75.00 level if buyers can force a breakout above the $66.00 level.