In the past 24 hours, Litecoin has traded on a very calm note; barely retesting the previous low of $1.755 and edging up only slightly higher to touch $1.876. The virtual currency seems to be taking a “resting break” after the monstrous run-up to 2-month highs.
Litecoin has skid 2.12% from yesterday’s observation to trade at $1.801.
Image: https://www.tradingview.com/x/px7qmcDK/
Technical analysis of the 240-minute BTC/USD price chart indicates that the current market condition offer no high-profit, low-risk trading opportunities.
Litecoin Chart Structure – In my previous analysis, I had discussed that Litecoin was off from its recent top as bears made a comeback. Including yesterday’s slide of 2%, the fall is now roughly 9.5%.
Fibonacci Retracements – Post hitting a high of $1.989 in the recent rally, Litecoin has been establishing the 38.2% retracement level of $1.789 as a short-term base.
Moving Average Convergence Divergence – The sideways consolidation of the virtual currency has resulted in an accelerating downslide for the MACD indicator. The MACD indicator is fast erasing the gains, along with the Signal Line. Updated values of MACD and Signal Line are 0.0506 and 0.0702 respectively. The Histogram is strongly negative with a value of -0.0196.
Momentum – The Momentum indicator failed to hold the slightly positive reading of 0.0083 and dipped into the negative territory, as bulls took a breather. The latest 10-4h Momentum value is -0.0235.
Relative Strength Index – With more gains erased and the underlying strength weakening, Litecoin has safely shed the overbought tag. The current 14-4h RSI reading is 60.9440.
Conclusion
The market is yet to make up its mind regarding the future direction, and until it does that, it would be unwise to speculate and create trading positions. Also, there are no lucrative trading opportunities at the current market level which do not involve high risks. Consolidation may test the patience of market participants for a longer time period.
