Analysis provided by Ashton Fraser, learn more about his trading strategies with the forex reversal indicator.
After a strong downtrend since midweek, Litecoin vs Bitcoin has settled down, with the market consolidating for the meantime.
Let’s take a closer look at the LTC/BTC H1 chart below (click to expand):
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I’ve performed the Fibonacci study from the high of the crash at 0.034 until yesterday’s low at 0.027. As we can see, from the 19th, it’s been a very bearish market with price dropping like a stone – a 20% drop in just a couple of days. It seems however someone’s managed to catch that stone.
We can see how the middle Bollinger line has a smooth trajectory to it, indicating at the very least the move was mainly consistent, although the amount of green bars in the Awesome Oscillator tells us there were quite a few bumps along the way, albeit small ones.
The main retrace was of course the one that rose from yesterday’s low at 0.027 until the 23.6% Fib level at 0.0285. Price then dropped back down again, since we had the Accelerator Oscillator as red, with the Awesome Oscillator following suit on the next candle. In the meantime the Stochastics were by now, crossing down, in an undersold zone.
If we observe the last few candles though, it becomes clear that consolidation is taking hold. Many of the candlesticks have large upper and lower wicks, an indication of indecision in the market, marked in a white ellipse. I expect this to remain the case for the rest of the day.
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