Analysis provided by Ashton Fraser, learn more about his Forex Reversals trading strategies.
After hitting a high of 18.76 on the 4th of March, Litecoin made a significant drop to the 50% Fib retracement level.
Let’s take a look at the LTC/USD hourly chart:
I discussed in my analysis yesterday, the price patterns which led to the reversal from the high on March 4th, and we’ve seen how 50% is a powerful support level.
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Which it duly did. Indeed, the Stochastics crossed upwards soon afterwards, and the Awesome Oscillator followed suit, hence propagating price to above the 38.2% Fib level. However, it has thus far failed to make it back to the 23.6% level. There’s some doubt to whether it will now, because the market is pretty much flat, with a sideways meandering.
In fact, zooming into the M15 chart, we can see why it’s not gone higher, and that’s due to the 38.2% Fib level I’ve applied to the actual retracement itself:
Therefore, I’d expect price to remain between 17.21 and 15.5 for the rest of the day.