Litecoin Bounces Off the 20 Daily SMA

Crytpocurrencies have benefited this year from all that has been going on with the coronavirus and the economic recession, which seems like it is coming back this winter, after the new lock-downs in the West. BITCOIN surged to $ 19,500 while LITECOIN climbed above $ 90.

Although, Bitcoin buyers gave up below the big round level at $ 20,000 on Wednesday and pulled more than $ 3,000 lower in the following days. That pulled other cryptocurrencies down with it and Litceoin lost around 25% of its value, falling to $ 67.

But the 20 SMA (grey) was waiting to provide support on the daily chart and the decline stopped right there. The $ 67 level was the high form back in September and now it seems like it has turned from resistance into support. My colleague Arlsan has opened a buy Litecoin signal and now the price has turned bullish again, trading more than $ 10 higher, so let’s hope the bounce continues further to the upside.