Advertisment

LTCUSD was previously moving inside an ascending channel on its 1-hour time frame but it seems that a reversal is due. Price is breaking below the channel support around 47.00 and could be due for a test of the next area of interest at 46.00.

The 100 SMA is above the longer-term 200 SMA so the path of least resistance might still be to the upside. However, LTCUSD has closed below the 100 SMA and a move below the longer-term moving average could inspire a downward crossover later on.

Stochastic is already indicating oversold conditions and looks ready to turn higher, possibly indicating a return in bullish pressure. RSI, on the other hand, has room to head south and keep selling momentum in play. A move below 46 could lead to a drop to the next area of interest at 42.00.

Strengthening demand for bitcoin after its hard fork and network upgrade has rendered other cryptocurrencies weaker in comparison. There have been no major incompatibility issues so far since only a few exchanges accept the other version of bitcoin while the network’s ability to handle more transactions makes it superior against competition.

Risk sentiment is also having a less straightforward impact on LTCUSD so far since it fails to benefit from risk-off flows unlike before. The tension between the US and North Korea has drawn investors away from stocks and commodities to seek higher returns in other markets, but litecoin doesn’t seem to be enjoying much support.

Dollar demand is also notably weaker following the release of downbeat PPI readings, which act as a precursor for weak CPI later today. If confirmed, this would drastically weigh on Fed rate hike expectations for next month and even for December. Still, traders are hoping that the Fed would start its balance sheet runoff soon.

Weekend gaps are possible across the board as headlines related to the North Korean situation might influence market sentiment before it reopens on Monday.



Get the latest Bitcoin News on The Bitcoin News
Our Social Networks:
Facebook Instagram Pinterest Reddit Telegram Twitter Youtube