Analysis provided by Ashton Fraser, learn more about his Forex Reversals trading strategies.
After the bulls of the past few days on Litecoin vs Bitcoin, the bears that started yesterday are continuing to dig the ground.
Lets take a closer look at the H1 chart on LTC/BTC below (click to expand).
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Yesterday I had explained how there was a very powerful bear setup by way of an amalgamation of a number of technicals, converging at the same time. We saw how the Stochastics yesterday morning were undersold, had crossed over bearing south, along with the AC and then the AO turning red. That, plus the fact the candle which triggered the bears had sell written all over it.
And so the selling continued today. I’ve done the Fibonacci study from the low at 0.00245, until yesterday’s high at 0.002646. After a period of consolidation overnight, price fell down until hitting the psychological round number at 0.0025, which also happens to be at the 76.8% Fibonacci retracement level.
Interestingly, there still could be some more room for a further push later today, if price can break the 0.0025 / 76.8% Fib level, as the other indicators are telling us that there’s still room for the bears to continue running. However, this probably won’t happen until after another period of ranging, as price is actually residing below the lower Bollinger band right now. I expect price to come back into the bands later this afternoon.