Analysis provided by Ashton Fraser, learn more about his Forex Reversals trading strategies.
Even though we’ve seen some bulls in March for Litecoin, the overall trend on the higher timeframes is bearish.
Take a look at the LTC/USD Daily chart below. I’ve drawn an important trendline which tells us why price will probably continue downhill for the meantime (click to expand):
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Price has now touched the trendline on three separate occasions on the Daily timeframe. It’s going to take some strong bulls to break through that line. And even though both the Awesome and Accelerator Oscillators are still green, I expect a change in colour on the Accelerator at least, over the weekend. In addition, Stochastics shall soon be in overbought territory, hence, as of right now, I’m struggling to see firm enough reasons for a break of the trendline.
Of course, the high of March at 18.75 wasn’t a coincidence, since it represents the 38.2% Fibonacci retracement level, as can be seen below circled in orange:
Price does now seem to be falling down towards the 23.6% Fib level, at 15.55, which it’s already tested once before on the 5th of March, so I expect another touch later today, albeit a temporary bounce.