Litecoin finally settles down over the weekend, with a Bollinger Squeeze paving way for what might come ahead this week.
Let’s take a look at the LTC/USD hourly chart below:
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I’ve performed the Fibonacci study from the high of this month at just above 21 to the low of last week on Friday, at 15.15.
As has already been discussed last week, price fell rapidly from the 161.8% Fibonacci extension, over a period of just a couple of days, hitting 15.15, which had already been tested earlier this month on more than one occasion.
Since the low, we can see how the market has slowly but surely been squeezed, as the Bollinger bands converge together, tightening the market with every passing few hours. Right now in fact, if you compare the upper and lower Bollinger bands, you can see they’re almost pointing towards each other, a clear sign of the squeeze taking a stranglehold.
Furthermore, if we analyse the other indicators at play, we can see some conflicts between them. Look at how many times the Accelerator Oscillator and Awesome Oscillator have chopped and changed between red and green over the space of a few short hours (marked in a white ellipse), more evidence of current and future short term ranging. Thus, I don’t expect much to change for the rest of the day.