Analysis provided by Ashton Fraser, learn more about his trading strategies with the Forex Reversal Indicator.
Litecoin vs Bitcoin finally breaks the massive resistance we’ve been speaking about over the past few weeks.
As we can see on the LTC/BTC H4 chart below, price has tested the red horizontal line of resistance at 0.0275 on multiple occasions since late January, going up towards 0.0279 as we speak.
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However, price has stalled at 0.0279 for the time being, and for good reason. Take a look at the LTC/BTC Daily chart below:
I’ve performed the Fibonacci study from the all time high at 0.052, until the year’s low at 0.0207. Now we can see why price has paused at 0.0279, since it is actually the 23.6% Fib retracement level we’re talking about here.
The question is, will price break 23.6% in the immediate future? Well, we definitely have some decent momentum by way of the Awesome Oscillator and the Stochastics still heading up. The issue is that those Stochastics are now in overbought territory. In addition, on the lower timeframes such as on H4 and H1 (I’ve not uploaded those charts here for brevity’s sake), we have other technicals pointing to at the very least, a slight drop, before we do see another attempt at breaking 0.0279.
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