During my last technical analysis for Litecoin vs Bitcoin on the 26th of March, I mentioned how the 23.6% Fib level could be a struggle for price to go beyond. Indeed, not only was it a struggle, it was outright rejection.
On Wednesday I explained five reasons why price would not be able to break the 23.6% Fibonacci, however, having said that, I still didn’t expect such a rapid bounce off that level.
I’ve copied here the chart from two days ago, so we can see what price was doing at the time of my analysis. As you can see, it was just hovering around the 23.6% Fib level at 0.0285:
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And now lets look at today’s chart:
Pretty conclusive. I’ve adjusted the Fibonacci study to cater for the new low of course. The candle marked with a red arrow is the one that initiated the drop, and it coincided with the Accelerator Oscillator turning red.
Once again, price has retraced back to the (new) 23.6% Fib level at 0.0279, and once again, it’s bounced off there, although not with the same vigour as it did with the first one. However, the Stochastics are still heading up, far from being overbought, and the AC and AO are both green, so we could yet see further tests of this level over the next few candles.