LTCBTC runs into sellers again around 0.00677
Litecoin/Bitcoin Index (LTCBTC) Technical Analysis Report for Jan 23, 2020 | by Techniquant Editorial Team
LTCBTC ended Thursday at 0.00647 tanking BTC0.00026 (-3.86%). This is the biggest single-day loss in over a month. Closing below Wednesday's low at 0.00655, LTC/BTC confirmed its breakout through the prior session low after trading up to BTC0.00021 below it intraday.
Daily Candlestick Chart (LTCBTC as at Jan 23, 2020):
Thursday's trading range has been BTC0.00043 (6.39%), that's above the last trading month's daily average range of BTC0.00033. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for LTCBTC.
Regardless of a strong opening the market closed below the previous day's open and close, forming a bearish Engulfing Candle. The last time this candlestick pattern showed up on January 13th, LTCBTC actually gained 8.17% on the following trading day. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
After trading down to 0.00634 earlier during the day, Litecoin bounced off the key technical support level at 0.00643 (S1). The failure to close below the support might increase that levels significance as support going forward. Prices broke below the key technical support level at 0.00666 (now R1), which is likely to act as resistance going forward. After having been unable to move above 0.00679 in the prior session, the cryptocurrency ran into sellers again around the same price level today, missing to move higher than 0.00677.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Support S1" stand out. Its common bearish interpretation has been confirmed for LTC/BTC. Out of 254 times, LTCBTC closed lower 53.54% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 59.84% with an average market move of 0.65%.
With seven out of the seven Major Cryptocurrencies closing lower today, the ones that stand out on the negative side are ETCUSD losing -9.63% and LTCUSD closing -6.3% lower. None of the markets managed to end the day in the green. Looking at the other Minor Cryptocurrencies, the winners of the day have been BCNUSD surging 19.15% and LSKBTC closing 7.06% higher. The worst performers of the day have been BTGUSD tanking -9.33% and XEMUSD closing -9.01% lower. Read more