Analysis provided by Ashton Fraser, learn more about his Forex Reversals trading strategies.
Litecoin has been falling since the 4th of March, but is now hovering between a couple of Fib lines.
Let’s take a closer look at LTC/USD on the four hour chart (click to expand):
As mentioned in previous analysis, the downtrend was triggered by a very powerful bear candle, (circled in red), long candle, huge body, completely above the upper Bollinger band, hardly any wicks.
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Price fell until 15.11, where we were met with a number of spinning tops, (circled in white) a strong sign of consolidation, and possible retrace.
And so it happened, within the next couple of candles, the Stochastics had crossed upwards, whilst being underbought, plus the Accelerator and Awesome Oscillators had turned green.
Price retraced until the 38.2% Fibonacci level at 16.4, and this level has actually been tested twice since, within the past eight hours.
As of right now, price has fallen back down to the 23.6% Fib level, which is also coincidentally happens to be the middle Bollinger line, hence this may provide some mild support.
Having said that, with the AC now turning red, and Stochastics approaching overbought territory, we’re likely to see some fluctuation between 16.4 and 15.1 for the rest of the day.