LTCUSD is trading inside a bearish channel pattern connecting the highs and lows since the start of July. Price just bounced off the descending channel support and is in the middle of a correction to the resistance.
Applying the Fibonacci retracement tool on the latest swing high and low on the 1-hour time frame reveals that the 61.8% Fibonacci retracement level coincides with the channel resistance just below the $44 level. This also lines up with the longer-term 200 SMA dynamic inflection point.
The 100 SMA is below this longer-term 200 SMA so the path of least resistance is to the downside. This moving average is also in line with the 50% Fib and is holding as dynamic resistance. If it continues to keep gains in check, LTCUSD could resume its drop to the swing low at $36.59 or until the channel support.
Stochastic is already indicating overbought conditions to signal that buyers are tired. RSI is on the move up but looks ready to turn lower in order to signal a pickup in selling pressure. Once both oscillators start heading lower, LTCUSD might follow suit and even attempt to break
Read more ... source: LiveBitcoinNews
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