Analysis provided by Ashton Fraser, learn more about his trading strategies at Forex Reversal.

Lets take a look at the M30 Litecoin chart below:

Join the iFX EXPO Asia and discover your gateway to the Asian Markets

First thing we’ll notice is the strong intra-day downwards white trendline that’s holding firm so far. It’s been tested five / six times, which, for a space of less than a day, is fairly significant.

Price fell from a high of 14.5 late last night / early this morning, reaching a low of 13, an important psychological whole number, at which point you could have expected a reaction. Subsequently, price did rise again for a few hours, which if we zoom out and examine the hourly chart below (click to expand), we can see how it hit the 50% Fibonacci retracement level, just above the middle Bollinger band.

Since then, price has been hovering around the middle Bollinger line / 50% Fib level, but given now the Accelerator Oscillator has turned bearish, and the Stochastics have crossed over, bearing down as well, then I would expect price to touch the 23.6% Fib level pretty soon.