LTCUSD runs into sellers again around 47.94
Litecoin/US Dollar Index (LTCUSD) Technical Analysis Report for Oct 18, 2020 | by Techniquant Editorial Team
LTCUSD finished Sunday at 47.58 gaining $0.64 (1.36%) on low volume. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (LTCUSD as at Oct 18, 2020):
Sunday's trading range has been $1.10 (2.34%), that's far below the last trading month's daily average range of $1.98. 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 higher than usual for LTCUSD.
After moving lower in the prior session, LTC managed to close higher but below the previous day's open, forming a bullish Harami Candle. The last time this candlestick pattern showed up on September 22nd, LTCUSD actually lost -3.51% on the following trading day. Additionally, three candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns and one bearish pattern, the Bearish Hikkake Pattern.
The cryptocurrency managed to close back above the 20-day moving average at 47.55. After having been unable to move above 47.66 in the prior session, LTC/USD ran into sellers again around the same price level today, missing to move higher than 47.94.
The market 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.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Hikkake Pattern" stand out. Its common bearish interpretation has been confirmed for LTC/USD. Out of 173 times, LTCUSD closed lower 54.34% 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 two trading days, showing a win rate of 60.12% with an average market move of -0.79%.
With five out of the other six 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 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