LTCBTC breaks back below 200-day moving average
Litecoin/Bitcoin Index (LTCBTC) Technical Analysis Report for Nov 22, 2020 | by Techniquant Editorial Team
LTCBTC ended Sunday at 0.00450 losing BTC0.00016 (-3.43%). 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 Nov 22, 2020):
Sunday's trading range has been BTC0.00023 (4.94%), that's slightly below the last trading month's daily average range of BTC0.00026. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for LTCBTC. Prices continued to consolidate within a tight trading range between 0.00435 and 0.00469 where it has been caught now for the last three trading days.
After moving higher in the prior session, Litecoin closed lower but above the previous day's open today, forming a bearish Harami Candle. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on November 15th, LTCBTC actually gained 13.33% on the following trading day.
Prices are trading close to the key technical support level at 0.00436 (S1). LTC closed back below the 200-day moving average at 0.00461. The cryptocurrency was sold again around 0.00469 after having seen highs at 0.00468, 0.00469 and 0.00464 in the last three trading sessions. Obviously there is something going on at that level.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and might now be heading back down towards the mean of the Bollinger Bands at 0.00408.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could accelerate should prices move above the nearby swing high at 0.00469 where further buy stops might get activated.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Harami Candle" stand out. Its common bearish interpretation has been confirmed for LTC/BTC. Out of 73 times, LTCBTC closed lower 50.68% 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 64.38% with an average market move of -0.26%.