LTCBTC closes within previous day's range after lackluster session
Litecoin/Bitcoin Index (LTCBTC) Technical Analysis Report for Oct 18, 2020 | by Techniquant Editorial Team
LTCBTC finished Sunday at 0.00413 flat on low volume. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (LTCBTC as at Oct 18, 2020):
Sunday's trading range has been BTC0.00005 (1.21%), that's far 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 previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, three candlestick patterns are matching today's price action, the Bullish Harami Cross Pattern and the Southern Doji which are both known as bullish patterns and one neutral pattern, the Doji.
Prices are trading close to the key technical support level at 0.00408 (S1). After having been unable to move lower than 0.00411 in the prior session, Litecoin found buyers again around the same price level today at 0.00412. The last time this happened on October 10th, LTCBTC gained 2.54% on the following trading day.
With another close below the lower Bollinger Band, prices are confirming their strong downward momentum in the short-term. A rally back into the Bollinger Band on the next trading day while could signal a potential change in momentum that might lead to a correction back up towards the center of the Bollinger Bands at 0.00431.
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 close-by 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 seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Harami Cross Pattern" stand out. Its common bullish interpretation has been confirmed for LTC/BTC. Out of 3 times, LTCBTC closed higher 66.67% 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 seven trading days, showing a win rate of 66.67% with an average market move of 21.26%.
With six out of the seven Major Cryptocurrencies closing higher today, the ones that stand out on the positive side are ETHUSD gaining 2.69% and BCHUSD closing 1.76% higher. On the flipside the worst performer has been ETCUSD closing -0.36% lower. Looking at the other Minor Cryptocurrencies, the winners of the day have been BCNUSD surging 13.16% and VETBTC closing 5.15% higher. The worst performers of the day have been WAVESBTC tanking -5.27% and WAVESUSD closing -4.08% lower. Read more