LTCCNY enters Death Cross for the first time since August 19th
Litecoin/Chinese Yuan Index (LTCCNY) Technical Analysis Report for Oct 18, 2020 | by Techniquant Editorial Team
LTCCNY ended Sunday at 320.31 gaining CN¥3.46 (1.09%) on low volume. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (LTCCNY as at Oct 18, 2020):
Sunday's trading range has been CN¥6.25 (1.97%), that's below the last trading month's daily average range of CN¥14.50. 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 prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. After moving lower in the previous session, Litecoin managed to close higher but below the prior day's open, forming a bullish Harami Candle. Additionally, two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns.
Buyers managed to take out the key technical resistance level at 317.12 (now S1), which is likely to act as support going forward. After having been unable to move lower than 315.08 in the previous session, LTC found buyers again around the same price level today at 316.85.
Although still in a long-term uptrend, the short and medium-term trends both turned bearish already. With its 50-day moving average crossing below its 200-day moving average, LTC/CNY has entered a so-called "Death Cross" for the first time since August 19th. Showing increasing downward momentum in the short and medium-term the "Death Cross" is known to indicate a potential bear market on the horizon. When the last "Death Cross" happened on April 2nd, LTCCNY actually gained 1.96% on the following trading day.
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 the market mark new lows for the month.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Resistance R1" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for LTC/CNY. Out of 247 times, LTCCNY closed lower 56.28% of the time on the next trading day after the market condition occurred.
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