LTCCNY dominated by bears dragging the market lower throughout the day
Litecoin/Chinese Yuan Index (LTCCNY) Technical Analysis Report for Oct 17, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, LTCCNY ended Saturday at 316.85 losing CN¥7.01 (-2.16%) on low volume. The bears were in full control today, moving the market lower throughout the whole session. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (LTCCNY as at Oct 17, 2020):
Saturday's trading range has been CN¥8.78 (2.71%), that's below the last trading month's daily average range of CN¥14.95. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for LTCCNY.
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, one bearish candlestick pattern matches today's price action, the Black Candle.
The cryptocurrency closed back below the 20-day moving average at 322.50 for the first time since October 3rd. When this moving average was crossed below the last time on September 2nd, LTCCNY lost -12.10% on the following trading day. After having been unable to move lower than 313.85 in the prior session, LTC found buyers again around the same price level today at 315.08.
While still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Selling might accelerate should prices move below the close-by swing low at 313.85 where further sell stops could get triggered. As prices are trading close to October's low at 298.49, downside momentum might speed up should LTC/CNY mark new lows for the month.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) below 20" stand out. Its common bullish interpretation has been confirmed for LTC/CNY. Out of 256 times, LTCCNY closed higher 58.98% 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 10 trading days, showing a win rate of 50.78% with an average market move of 2.70%.
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