Analysis provided by Ashton Fraser, learn more about his Forex Reversals trading strategies.
Ever since touching almost 15 last week, Litecoin seems to have followed a slow but steady trajectory.
Having said that, taking a look at the Litecoin hourly chart above (click to expand), we can see how price has pretty much just wandered between the 23.6% Fib level at 13.9 and the 38.2% Fib level at 13.3 since Friday. The market has reached a relative level of consolidation, I wouldn’t expect much movement for the rest of the day.
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An interesting caveat to note however – during this period of relative consolidation, price did test the 50% Fib level on two occasions. We can gauge that there’s definite scope for the bears to try again next week, but confirmation would be required before that can be ascertained with a high level of assurance. I believe a break of the 50% would be a valid confirmation.
Right now, we’re seeing price is sticking to the 38.2% Fib retracement level, and whilst both the Awesome and Accelerator Oscillators are red, price is touching the lower Bollinger line. There could be a small retrace here, before we see another push down.
I mentioned on Friday how there was a strong resistance on H4 chart on LTC/USD in the form of a downwards trend line:
Indeed that trend line remains intact, hence I am still bearish on Litecoin.