LTCGBP closes above its opening price after recovering from early selling pressure
Litecoin/British Pound Index (LTCGBP) Technical Analysis Report for Oct 17, 2020 | by Techniquant Editorial Team
LTCGBP finished Saturday at 41.56 gaining £0.02 (0.05%). Trading up to £0.56 lower after the open, Litecoin managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on Tuesday, LTCGBP actually lost -11.53% on the following trading day. 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 (LTCGBP as at Oct 17, 2020):
Saturday's trading range has been £1.33 (3.2%), that's below the last trading month's daily average range of £2.45. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for LTCGBP.
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. After moving lower in the prior session, the market managed to close higher but below the previous day's open, forming a bullish Harami Candle. Additionally, three candlestick patterns are matching today's price action, the Bullish Harami Cross Pattern and the Southern Doji which are both known as bullish patterns and one neutral pattern, the Doji.
The cryptocurrency shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Further selling could move prices lower should the market test September's close-by low at 37.36.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Harami Cross Pattern" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for LTC/GBP. Out of 3 times, LTCGBP closed lower 66.67% 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 four trading days, showing a win rate of 66.67% with an average market move of -4.68%.
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