Litecoin rose from a month low of 9.76 at 4am GMT this morning to a week high of 10.58 at 6.30am; more than an eight percent jump in just a couple of hours. Considering the recent sluggishness of the market over the past few hours, this is a refreshing move.
Let’s take a closer look at the current LTC/USD thirty minute chart below (click to expand):
I’ve performed the Fibonacci study to the two aforementioned points, i.e. from the low of 9.76 to the high of 10.58.
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As price rose, so many technical indicators came into alignment (marked in a white ellipse). We had the Stochastic Oscillator heading upwards from an oversold position, with the Accelerator Oscillator turning green, likewise the Awesome Oscillator. Finally the Parabolic SAR appeared below the candlestick. All of this occurred on the same candle, an exceedingly powerful bull signal.
As a result, price shot up, with one candle in particular making serious headway (i.e. the third candle from the bull signal), as we can see it managed to surpass multiple Bollinger levels, eventually closing above the upper Bollinger line. Observing the two candles following that, we can see how close they were to both opening and closing above the upper Bollinger band, which tells me at the very least, there’s going to be some restrictions placed on the bulls in the immediate future.
Price retraced down the 38.2% Fibonacci level, (marked in blue), at 10.27, but that’s as far as it’s been able to test. I believe we are entering a period of consolidation over the next few hours, since there are conflicting technicals at work.
Expect 38.2% to be tested again later today.