LTC/BTC Technical Analysis – 29th April 2014

Since the 24th, Litecoin vs Bitcoin has been falling like a leaf, from a high of 0.0257, reaching a two

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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ltcbtcdaily_23_04_2014

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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.

ltcbtch4_29_04_2014

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.

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