Over the past few days, approximately since September 15th, Litecoin has been holding steady within a price range of $45 & $57. Safe to say since the last dip that resulted in a low that hadn't been visited since mid-June is that LTC is in consolidation as a number of traders and investors exited early after the high volume peak on 15th September. Uncertainty within the market was expected after the BTC price correction that we recently went through but the relative strength of LTC has proven certain limits that the price will bottom out at and reverse.
We've been looking at steady support at the 0.786 retracement level and an acknowledged resistance at the 0.618 retracement level. Since the last dip that saw bears drive down price to $32 on the wick, LTC has attempted a slight uptrend giving me reason to acknowledge an ascending triangle. This at the current moment still needs solid validation as to whether the price will remain within the minor uptrend or if the price will revisit the 0.618 retracement level at $45 before reversal and breakout past the 0.618 reatracement level at $55. We'll be paying attention to where the candlesticks close today.
Based on the consolidation history prior to August 20th, its evident that the price levels during consolidation had a slight uptick on support as buyers confidence was renewed before the breakout. Our current consolidation pattern shows us two things:
Going long with a S.L of $46 and a T.P of $56 would also be a solid move based on the current trend.
Whether LTC will break past the resistance at $57 remains to be seen. A break and candlestick close above the 0.618 retracement level would signal a potential breakout. Support at $45 looks strong and would take a lot of traders leaving LTC to break and close below the 0.786 level.
Based on the consolidation history prior to August 20th, its evident that the price levels during consolidation had a slight uptick on support as buyers confidence was renewed before the breakout. Our current consolidation pattern shows us two things:
- 1. The price will find support at the 0.786 level before reversal toward 0.618.
- 2. The price will conform to our ascending triangle and find resistance at 0.618 before revisiting 0.786 and potential breakout toward our previous $90 high.
Going long with a S.L of $46 and a T.P of $56 would also be a solid move based on the current trend.
Whether LTC will break past the resistance at $57 remains to be seen. A break and candlestick close above the 0.618 retracement level would signal a potential breakout. Support at $45 looks strong and would take a lot of traders leaving LTC to break and close below the 0.786 level.
Comment:
The current squeeze on the bollinger bands indicates a potential future of increased volatility and trading opportunities.