LTCUSD closes lower for the 5th day in a row
Litecoin/US Dollar Index (LTCUSD) Technical Analysis Report for Oct 17, 2020 | by Techniquant Editorial Team
Moving lower for the 5th day in a row, LTCUSD finished Saturday at 46.94 losing $0.68 (-1.43%) on low volume. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (LTCUSD as at Oct 17, 2020):
Saturday's trading range has been $1.29 (2.71%), that's below the last trading month's daily average range of $2.04. 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.
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. Additionally, two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns. The last time a Bearish Short Candle showed up on July 24th, LTCUSD actually gained 11.32% on the following trading day.
The market closed back below the 200-day moving average at 47.61 for the first time since October 7th.
Litecoin shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Selling might speed up should prices move below the nearby swing low at 45.84 where further sell stops could get triggered. As prices are trading close to October's low at 43.36, downside momentum might accelerate should the cryptocurrency mark new lows for the month.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 200" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for LTC/USD. Out of 41 times, LTCUSD closed higher 65.85% 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 60.98% with an average market move of 0.68%.
With four out of the other six 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 EOSUSD losing -0.39%. Looking at the 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