Litecoin vs Bitcoin has entered a period of consolidation since yesterday, and it’s not as if the market has come to a standstill; price action tells us there’s a mammoth of a fight occurring between the bulls and the bears in order to gain supremacy.
In yesterday’s LTC/BTC technical analysis, I posted the following H4 chart (click to expand):
Where I mentioned, “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. 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”
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Unsurprisingly, this is what exactly happened, as we can see via the current LTC/BTC H4 chart below (click to expand):
So price tested 38.2% at 0.024, bouncing up to above the 23.6% level, before re-testing 38.2% two more time, without being able to break it. Take a look at the candlesticks marked in white – we can see how they possess extremely long wicks, the first with a long upper wicks and the next two with long lower wicks. All this, whilst price is pretty much at the same location as it was yesterday. At the same time, we have conflicting technicals, such as Accelerator Oscillator as red and the Awesome Oscillator as green.
I expect the status quo to continue for at least the next few bars, by which time the Stochastic Oscillator will probably present itself in an overbought position, in which case we’ll need to seek further corroborating technicals.