LTCUSD closes lower for the 4th day in a row
Litecoin/US Dollar Index (LTCUSD) Technical Analysis Report for Dec 08, 2018 | by Techniquant Editorial Team
Moving lower for the 4th day in a row, LTCUSD finished Saturday at 24.69 edging lower $0.26 (-1.04%). Today's close at 24.69 marks the lowest recorded closing price since May 30, 2017. Trading $1.69 higher after the open, Litecoin 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.
Daily Candlestick Chart (LTCUSD as at Dec 08, 2018):
Saturday's trading range has been $3.57 (14.28%), that's slightly below the last trading month's daily average range of $3.89. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for LTCUSD.
Two candlestick patterns are matching today's price action, the Bearish Spinning Top and the Bearish High-Wave Candle which are both known as bearish patterns.
Prices are trading close to the key technical support level at 22.36 (S1). After having been unable to move above 26.61 in the prior session, the market ran into sellers again around the same price level today, failing to move higher than 26.69.
Crossing below the lower Bollinger Band for the first time since November 20th, prices have shown unusually strong downward momentum in the short-term. This might either indicate a potential selling climax after which prices could head back up towards the mean of the Bollinger Bands at 31.13 or signal the beginning of a strong momentum breakout leading to even lower prices. The last time prices broke out below the lower Bollinger Band on November 19th, LTCUSD lost -10.99% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling might accelerate should prices move below the nearby swing low at 22.36 where further sell stops could get activated.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "4 Consecutive Lower Closes" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for LTC/USD. Out of 42 times, LTCUSD closed higher 61.90% of the time on the next trading day after the market condition occurred.
With three of the other Major Cryptocurrencies closing higher and three closing lower today, the winners of the day are EOSUSD surging 6.86% and XRPUSD gaining 2.28%. On the flipside the worst performers have been BCHUSD closing -4.7% lower and ETHUSD losing -0.97%. Looking at the Minor Cryptocurrencies, the winners of the day have been BTCCNY surging 21.7% and ETHCNY closing 18.49% higher. The worst performers of the day have been BCHBTC tanking -6.69% and IOTBTC closing -4.13% lower. Read more