LTCUSD seems to be treading sideways, bouncing off support around $47.25 and resistance at $56.50. Price has just recently come off a test of the range resistance and is now headed back to support. A bit of consolidation is happening, though, as a small symmetrical triangle formed.
A break below the $54 level could be enough to confirm the presence of downside momentum that could take LTCUSD down to the bottom of the range. The 100 SMA is above the longer-term 200 SMA, though, so the path of least resistance is to the upside. In that case, there could be a chance for a break past the top of the range and a rally of around $9.25 or the same height as the rectangle formation.
Stochastic is pointing down to show the presence of bearish pressure so LTCUSD might follow suit. RSI, on the other hand, is pointing up to signal that buyers are on top of their game and could push for more gains. A strong break past the $54.50 area could be enough to signal that a rally is underway.
Cryptocurrencies regained ground upon hearing positive remarks from Morgan Stanley CEO Gorman who said that it’s more than just a fad. This ran contrary to remarks from JP Morgan CEO Dimon who said that it is in a bubble.
Apart from that, LTCUSD could also be looking at some upside if the tensions with North Korea worsen. At the moment, threats are simmering but it could merely be the calm before the storm. This is keeping traders on edge and wary of putting funds in traditional markets like stocks or commodities that could be vulnerable to geopolitical issues, choosing to invest in digital gold instead.
As for the dollar, the main catalyst might be the NFP release on Friday and the leading indicators in the days ahead. This could have a big impact on Fed tightening expectations and therefore dollar demand, so downbeat results could mean more upside for LTCUSD.
Our Social Networks: Facebook Instagram Pinterest Reddit Telegram Twitter Youtube
