Since the 24th, Litecoin vs Bitcoin has been falling like a leaf, from a high of 0.0257, reaching a two week low of 0.0229. The move down was consistent, but there is good reason to believe the latest support can help drive some bulls.
During last week’s LTC/BTC analysis, I posted the following Daily chart:
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Where I mentioned, “In recent days has there been some stability, but we could be on the cusp of further bears…. A clearer direction may well indeed establish itself… There seems to be a concerted effort to break free from 61.8%, as the Stochastics are now on their way down along with the AC turning red. I wouldn’t be surprised to see price hit 78.6% at 0.0235 later this week.” Within 48 hours, price broker 61.8% and we saw a drop to slightly below 0.0235 as the current chart below demonstrates. I’ve actually zoomed into the H4 timeframe to attain a clearer picture for the short term to medium term.
I’ve performed the new Fibonacci study from and to the two points mentioned at the very top of this analysis. We can see how, after a number of technicals came into alignment, especially the Stochastics which started to head north from an oversold position, plus the Awesome Oscillator turning green, price has retraced to the 23.6% Fibonacci line, at 0.0235 (which also happens to be our 78.6% Fib from the first chart), testing it on a couple of occasions, marked in red. However, the momentum of the Awesome Oscillator and Stochastics are still relatively determined, and I am of the opinion price will eventually break this level within the next few candles. If it doesn’t break by tonight, then we may enter a period of consolidation. But as I’ve explained, there is a decent possibility of the break occurring, since we also have the PSAR and the Accelerator Oscillator giving us bullish suggestions.