LTCBTC snaps to lowest close since March 28, 2017
Litecoin/Bitcoin Index (LTCBTC) Technical Analysis Report for Oct 17, 2020 | by Techniquant Editorial Team
Moving lower for the 6th day in a row, LTCBTC finished Saturday at 0.00413 losing BTC0.00008 (-1.9%) on low volume. Today's close at 0.00413 marks the lowest recorded closing price since March 28, 2017. The bears were in full control today, moving the market lower throughout the whole session. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (LTCBTC as at Oct 17, 2020):
Saturday's trading range has been BTC0.00010 (2.38%), that's slightly below the last trading month's daily average range of BTC0.00012. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for LTCBTC.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 0.00408 (S1).
Crossing below the lower Bollinger Band for the first time since September 21st, prices have shown unusually strong downward momentum in the short-term. This could either indicate a potential selling climax after which prices might head back up towards the mean of the Bollinger Bands at 0.00431 or signal the beginning of a strong momentum breakout leading to even lower prices. The last time prices broke out below the lower Bollinger Band on September 21st, LTCBTC actually gained 1.93% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling could speed up should prices move below the nearby swing low at 0.00408 where further sell stops might get activated. With prices trading close to this year's low at 0.00407, downside momentum could accelerate should the cryptocurrency break out to new lows for the year.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "6 Consecutive Lower Closes" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for LTC/BTC. Out of 26 times, LTCBTC closed higher 61.54% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after eight trading days, showing a win rate of 69.23% with an average market move of 1.33%.
With four out of the seven Major Cryptocurrencies closing higher today, the ones that stand out on the positive side are ETHUSD gaining 0.81% and BTCUSD closing 0.37% higher. On the flipside the worst performers have been BCHUSD closing -2.05% lower and LTCUSD losing -1.43%. Looking at the other Minor Cryptocurrencies, the winners of the day have been WAVESUSD surging 8.14% and WAVESBTC closing 7.59% higher. The worst performers of the day have been BCNUSD tanking -10.94% and BCHBTC closing -2.26% lower. Read more