After the bear setup I discussed last week came into fruition, Litecoin vs Bitcoin has hiked to 0.02457 this morning, although it’s unlikely this level will be surpassed today.
I posted the following chart during my last analysis on LTC/BTC (click to expand):
Where I mentioned,
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“The problem is, even though current technicals as discussed above are implying is a sell is imminent, including the now red Awesome, I’m not really sure, mainly due to what I’m seeing on the higher Daily timeframe, which is frankly, very conflicting.”
I had some doubts whether the sell would occur, but the market most definitely did not, with price falling down to 0.02361. And this is where I’m performing the new Fibonacci study from, until the current high at 0.02457:
Take a look at the candle marked in a red circle; it is a) completely contained outside the Bollinger band, b) a spinning top, possessing a relatively long upper wick. We can also see how the Stochastics are now falling every so slightly. All in all, warning signs for the bulls.
I can definitely see price now falling to the 38.2% Fibonacci retracement level, but whether it can push beyond there, it’s hard to say, since we still many indicators giving bullish signals, such as the Accelerator and Awesome Oscillators as green and the Parabolic SAR beneath the candlesticks.