Bear flag pattern is broken now the bears need to crack 40.00

• Litecoin trades nearly 2% lower after the bear flag pattern broke recently.
• The price also bounced off the 38.2% Fibonacci level to the downside.

LTC/USD daily chart

Litecoin has been looking bearish since the bulls were unable to take the 50.00 level. Once the upside momentum died down the price consolidated back into the bear flag pattern which broke four sessions ago. Now the target for the bears is the psychological 40.00 level.

The RSI is also looking pretty bearish after the momentum indicator broke below the 50 mid-line. There is lots of space for the indicator to move into the oversold zone which it has not yet reached. The volume histogram is also on the rise as the selling continues but there is still the chance the bulls could find support and push the price higher.

Additional levels