LTCUSD unable to break through key resistance level
Litecoin/US Dollar Index (LTCUSD) Technical Analysis Report for Oct 23, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, LTCUSD finished the week 16.54% higher at 55.45 after gaining $1.00 (1.84%) today on high volume. Today's close at 55.45 marks the highest recorded closing price since September 2nd. 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 Oct 23, 2020):
Friday's trading range has been $3.73 (6.85%), that's above the last trading month's daily average range of $2.42. 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.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
Unable to break through the key technical resistance level at 56.72 (R1), LTC closed below it after spiking up to 56.98 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. After having been unable to move lower than 53.11 in the prior session, the cryptocurrency found buyers again around the same price level today at 53.25. The last time this happened on Wednesday, LTCUSD gained 2.47% on the following trading day.
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 49.01.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for LTC/USD. Out of 119 times, LTCUSD closed lower 56.30% of the time on the next trading day after the market condition occurred.