Litecoin price is showing a bullish reaction as it tags the $124.62 support level. A further build-up of buying pressure is likely to propel LTC by 20% to $149.22. If the bears lead to a breakdown of the support floor at $118, the bullish thesis will face invalidation. Litecoin price is currently indicating a reversal in price after a two-week consolidation phase. LTC is likely to retest the upper limit of this range in an attempt to shatter it.

LTC price sliced through the $130.59 support level on July 14 but bounced off the immediate barrier at $124.62. This sudden surge in buying pressure leading to a minor upswing could be similar to the 20% impulsive move seen between June 27 and June 29.

Assuming this scenario plays out, investors can expect Litecoin price to rally 20% to tag $149.23. While this stubborn barrier has been prevented during three previous attempts, a decisive 6-hour candlestick close above it will signal strength among buyers.

Such a development might attract sidelined investors, extending the 20% leg-up by another 10% if LTC bulls manage to slice through $156.08 and $160.85.

While it is optimistic to assume a bounce to push Litecoin price higher, investors should not disregard the possibility of a sudden downtrend. A potential spike in bearish momentum that pushes LTC below $124.62 will indicate a weakness among bidders.

If the sellers push Litecoin price below $118.60, not allowing the buyers to recuperate, it will invalidate the bullish thesis and, in some bearish cases, trigger an 11% sell-off to the range low at $104.78.

LTCUSD H4

Jul 18 2021

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