LTCGBP closes below its opening price unable to hold early session gains
Litecoin/British Pound Index (LTCGBP) Technical Analysis Report for May 23, 2020 | by Techniquant Editorial Team
LTCGBP ended Saturday at 39.53 losing £0.08 (-0.2%). Trading £0.60 higher after the open, LTC was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (LTCGBP as at May 23, 2020):
Saturday's trading range has been £0.90 (2.27%), that's far below the last trading month's daily average range of £2.25. 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 LTCGBP.
After moving higher in the prior session, the cryptocurrency closed lower but above the previous day's open today, forming a bearish Harami Candle. The last time this candlestick pattern showed up on May 9th, LTCGBP lost -10.99% on the following trading day. Additionally, two candlestick patterns are matching today's price action, the Bearish Spinning Top and the Shooting Star which are both known as bearish patterns.
After spiking up to 40.21 during the day, LTC/GBP found resistance at the 100-day moving average at 39.81. After having been unable to move above 40.00 in the prior session, Litecoin ran into sellers again around the same price level today, missing to move higher than 40.21.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might accelerate should prices move above the nearby swing high at 41.11 where further buy stops could get triggered. Selling might speed up should prices move below the close-by swing low at 37.41 where further sell stops could get activated.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Spinning Top" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for LTC/GBP. Out of 389 times, LTCGBP closed higher 51.16% 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 53.21% with an average market move of 7.16%.
With five out of the seven Major Cryptocurrencies closing lower today, the ones that stand out on the negative side are EOSUSD losing -1.16% and LTCUSD closing -0.81% lower. On the flipside the best performers have been ETCUSD closing 1.55% higher and BTCUSD gaining 0.23%. Looking at the other Minor Cryptocurrencies, the winners of the day have been BCNUSD surging 10.84% and XVGUSD closing 5.05% higher. The worst performers of the day have been HSRBTC tanking -9.88% and ARDRBTC closing -9.27% lower. Read more