LTCUSD finds buyers again around 42.12
Litecoin/US Dollar Index (LTCUSD) Technical Analysis Report for Feb 10, 2019 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, LTCUSD finished Sunday at 46.93 gaining $2.63 (5.94%) on high volume. Today's close at 46.93 marks the highest recorded closing price since November 13, 2018. Trading up to $2.49 lower after the open, the cryptocurrency managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Saturday's high at 46.00, LTC confirmed its breakout through the previous session high after trading up to $1.42 above it intraday.
Daily Candlestick Chart (LTCUSD as at Feb 10, 2019):
Sunday's trading range has been $5.30 (11.88%), that's far above the last trading month's daily average range of $2.53. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for LTCUSD.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar. The last time this happened on February 1st, LTCUSD gained 4.79% on the following trading day.
Buyers managed to take out the key technical resistance level at 46.20 (now S1), which is likely to act as support going forward. After spiking up to 47.42 during the day, LTC/USD found resistance at the 200-day moving average at 47.06. After having been unable to move lower than 42.34 in the prior session, the market found buyers again around the same price level today at 42.12.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day though might signal a potential change in momentum that could lead to a correction back down towards the center of the Bollinger Bands at 34.46.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "4 Consecutive Higher Closes" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for LTC/USD. Out of 30 times, LTCUSD closed lower 63.33% of the time on the next trading day after the market condition occurred.
With four out of the other six Major Cryptocurrencies closing higher today, the ones that stand out on the positive side are ETHUSD gaining 5.17% and ETCUSD closing 2.43% higher. On the flipside the worst performers have been XRPUSD closing -0.51% lower and BCHUSD losing -0.41%. Looking at the Minor Cryptocurrencies, the winners of the day have been HSRBTC surging 9.24% and LTCGBP closing 6.51% higher. The worst performers of the day have been BCNUSD tanking -4.57% and TRXBTC closing -1.95% lower. Read more