Analysis provided by Ashton Fraser, learn more about his trading strategies with the Forex Reversal indicator.
Litecoin vs Bitcoin has been following pretty much what I expected over the past 24 hours, as I explained in my analysis for the pair a couple of days ago.
Let’s take a closer look at the hourly LTC/BTC chart below (click to expand):
As you can see, for today’s analysis, I’ve performed my Fibonacci study from exactly the same points I mentioned on the 12th, i.e. from the week’s low on the 9th of March at 0.0248 until the last major swing high, which also happens to be March’s high at just under 0.0275.
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On Wednesday afternoon, I mentioned how, “It’s almost inconceivable that price won’t touch the 23.6% Fibonacci retracement level now, seeing as though we’re already very close. We may see a bounce off 23.6%, before another push down to 38.2% later on.”
And that’s exactly what happened. We saw price test 23.6% (marked with a blue circle), before rising to March’s high again at 0.275 (first yellow arrow), and then heading down to the 38.2% Fib level at 0.0265 (second yellow arrow). It’s becoming increasing clear that the high of March @ 0.0275 is becoming a very strong resistance area, and it’s going to take some serious bulls to smash through this zone.
As I’m writing this technical piece right now, price has just crossed the 38.2% Fibonacci retracement level, with the Stochastics heading down in a smooth fashion, not yet oversold, along with both the Accelerator Oscillator & Awesome Oscillator having turned red – so this may tell us a move to 50% at 0.0261 may occur soon.
There’s one issue that may prevent this from happening however, which is that price is currently below the lower Bollinger band, and often what follows is a quick rise for price to get back into the bands.
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