Litecoin is starting the new trading month more positively after the sixth-largest cryptocurrency incurred its largest weekly loss since July 2019 last week.
Litecoin price analysis shows that the cryptocurrency could stage a rebound back towards the $73.00 level before deciding on its next major move.
Litecoin medium-term price trend
Litecoin suffered its largest weekly decline in nearly eight months last week as the ever popular cryptocurrency tumbled below the $60.00 level.
The LTC/USD pair also slumped below its key 200-day moving average over the weekend for first-time in over a month.
Litecoin technical analysis shows that the cryptocurrency could stage a rebound towards the $73.00 level now that it has reached its near-term bearish target.
The daily time frame is showing price consolidating around the LTC/USD pairs 200-day moving average, and the 50 percent Fibonacci retracement of the current 2020 trading high to the 2019 low.
Sustained strength above the $60.00 level could provoke a recovery back towards the $65.00 and possibly the $73.00 level.
Litecoin short-term price trend
Litecoin technical analysis shows that the cryptocurrency has a short-term bearish bias while trading below the $70.00 level.
The lower time frames show that a huge bearish head and shoulders pattern will form if price slumps towards the $50.00 level.
Continued weakness below the $58.00 level could prompt a deeper decline towards the $55.00 and possibly the $50.00 level.
Looking at the downside potential of pattern, it implies a drop towards the $20.00 level could occur if the $50.00 level is breached.
It is worth noting that the total market capitalization of the entire cryptocurrency market is currently technically bullish, which implies that the bearish short-term scenario may not occur at this stage.
Litecoin technical summary
Litecoin technical analysis is showing that the cryptocurrency could recover towards the $73.00 level before the next major direction move occurs. The $58.00 level is likely to act as a major pivot point.