LTCBTC climbs to highest close since September 12th
Litecoin/Bitcoin Index (LTCBTC) Technical Analysis Report for Nov 21, 2020 | by Techniquant Editorial Team
LTCBTC ended Saturday at 0.00466 gaining BTC0.00024 (5.43%) on high volume. Today's close at 0.00466 marks the highest recorded closing price since September 12th. The bulls were in full control today, moving the market higher throughout the whole session. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (LTCBTC as at Nov 21, 2020):
Saturday's trading range has been BTC0.00033 (7.47%), that's above the last trading month's daily average range of BTC0.00025. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for LTCBTC.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Last Engulfing Top Pattern.
The market managed to close above the 200-day moving average at 0.00461 for the first time since March 15th. When this moving average was crossed above the last time on March 15th, LTCBTC actually lost -3.99% on the following trading day. Prices are trading close to the key technical resistance level at 0.00490 (R1). LTC ran into sellers again today around 0.00468 for the third trading day in a row after having found sellers at 0.00469 in the previous session and at 0.00464 two days ago.
Crossing above the upper Bollinger Band for the first time since Thursday, prices have shown unusually strong upward momentum in the short-term. This might either indicate a potential buying climax after which prices could head back down towards the mean of the Bollinger Bands at 0.00405 or signal the beginning of a strong momentum breakout leading to even higher prices.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might speed up should prices move above the nearby swing high at 0.00469 where further buy stops could get activated.
Among the 14 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 100" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for LTC/BTC. Out of 43 times, LTCBTC closed lower 79.07% 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 72.09% with an average market move of -3.06%.