LTCGBP runs into sellers again around 42.26
Litecoin/British Pound Index (LTCGBP) Technical Analysis Report for Oct 18, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, LTCGBP ended Sunday at 42.07 gaining £0.51 (1.23%). 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 (LTCGBP as at Oct 18, 2020):
Sunday's trading range has been £0.87 (2.09%), that's far below the last trading month's daily average range of £2.36. 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 prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. 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. The last time a White Candle showed up on Thursday, LTCGBP actually lost -5.27% on the following trading day.
After trading down to 41.39 earlier during the day, the market bounced off the key technical support level at 41.56 (S1). The failure to close below the support might increase that levels importance as support going forward. After spiking up to 42.26 during the day, LTC found resistance at the 50-day moving average at 42.26. After having been unable to move above 42.31 in the previous session, LTC/GBP ran into sellers again around the same price level today, failing to move higher than 42.26.
Litecoin shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Buying could speed up should prices move above the close-by swing high at 44.27 where further buy stops might get triggered.
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/GBP. Out of 221 times, LTCGBP closed lower 57.01% 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