LTCUSD Technical Analysis for 09/25/2017 – Where To Next?

LTCUSD is still in consolidation mode, forming a symmetrical triangle visible on its 1-hour time frame. Price is right at the peak of the formation, which means that a breakout might happen pretty soon.

The chart pattern spans 36.00 to 60.00 so the resulting rally or selloff could last by the same height. The 100 SMA is below the longer-term 200 SMA, though, which suggests that the path of least resistance is the downside. In other words, a breakdown is more likely to occur than an upside break. Also, the moving averages are close to the triangle resistance, adding to its strength as a ceiling.

A move past the support at 48.00 could be enough to confirm a downside break while a candle closing past the 200 SMA dynamic resistance around 50.00 could signal an upside break. Stochastic seems to be stalling from its climb to reflect a potential return in selling pressure, but there’s still room to to before indicating overbought conditions. Similarly, RSI looks ready to head south but can still squeeze out some bullish momentum before reaching the overbought region.

The US dollar is strongly supported across the board on the Fed’s renewed rate hike expectations. This was supported by the upgrade in GDP forecasts despite the impact of the recent hurricanes and the confirmation that balance sheet unwinding will begin in October.

On the other hand, cryptocurrencies like LTCUSD are still on the back foot following China’s recent regulations. Apart from banning ICO funding, the country also shut down several bitcoin exchanges in the country, leading to massive liquidation and a large dent in trading activity.

Traders are sitting on their hands and waiting for more catalysts for now, but it looks like any confirmation that cryptocurrency exchanges can no longer reopen in China might spur a downside move. Meanwhile, a return in geopolitical risk stemming from North Korea tensions could still revive demand for digital gold like bitcoin and litecoin. Note that traders tend to seek higher returns outside of traditional markets during these cases.