LTCBTC closes higher for the 3rd day in a row
Litecoin/Bitcoin Index (LTCBTC) Technical Analysis Report for Aug 01, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, LTCBTC ended Saturday at 0.00522 gaining BTC0.00009 (1.75%) on high volume. Today's close at 0.00522 marks the highest recorded closing price since May 4th. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (LTCBTC as at Aug 01, 2020):
Saturday's trading range has been BTC0.00025 (4.87%), that's slightly above the last trading month's daily average range of BTC0.00021. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for LTCBTC.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar. The last time this happened on June 26th, LTCBTC actually lost -2.98% on the following trading day.
Buyers managed to take out the key technical resistance level at 0.00520 (now S1), which is likely to act as support going forward. After having been unable to move lower than 0.00507 in the prior session, the cryptocurrency found buyers again around the same price level today at 0.00505.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could accelerate should prices move above the close-by swing high at 0.00530 where further buy stops might get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Resistance R1" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for LTC/BTC. Out of 232 times, LTCBTC closed lower 60.34% 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 61.21% with an average market move of 0.47%.
With seven out of the seven Major Cryptocurrencies closing higher today, the ones that stand out on the positive side are XRPUSD gaining 12.04% and ETHUSD closing 11.71% higher. None of the markets ended the day in the red. Looking at the other Minor Cryptocurrencies, the winners of the day have been ZECUSD surging 19.59% and DOGEUSD closing 15.6% higher. The worst performers of the day have been STRATBTC tanking -4.08% and ARDRBTC closing -4.0% lower. Read more