Litecoin Price: Daily Timeframe Shows Trouble Ahead.....
Conclusion for today’s Litecoin analysis: A close below ~67.62 implies an increase in bearish momentum, and therefore lower prices to be expected.
Litecoin price for today’s analysis is presented on a Daily timeframe (log scale) that shows over 5 months of market action. This period includes a bullish move to the price peak of 146.00 on June 22, 2019 followed by the current price swing to the downside.
Tools for analysis include the standard Bollinger band which uses a 20 simple moving average (SMA) engulfed by an upper band, 2 standard deviations above the value of the SMA and a lower band that is 2 standard deviations less than the value of the 20 SMA.
Also plotted on the chart is the 200 Day moving average and 50 Day moving average (MA) of Litecoin. As a guideline, periods of expansion of the volatility band are usually followed by contraction. An example of such scenario is marked by the blue box which currently shows a narrowing of the band after a previous expansion period downwards.
Narrowing of the band should therefore be followed by expansion or an increase in volatility upwards or downwards. Litecoin price testing the upper boundary of the Bollinger band on September 18 and 19, 2019 at ~77.31 without breaking out suggests weakness to the upside. Reversion back to the middle of the band therefore would be the minimum expectation to the downside with further downside expected if price does close below the 20 SMA and ~67.62.
Also supporting the current bearish scenario for today’s Litecoin analysis is the downward slope of the 50 moving average that coincides with the upper band of the band suggesting that more downside is to be expected.
Moreover, August 31, 2019 also saw the 50 moving average successfully cross below the 200 day moving average which also argues for a bearish sentiment in Litecoin.
On the other hand, a close above the 50 day moving average and 200, with the former moving above the latter would argue against further downside and therefore increase in bullish momentum in Litecoin.
Litecoin price for today’s analysis is presented on a Daily timeframe (log scale) that shows over 5 months of market action. This period includes a bullish move to the price peak of 146.00 on June 22, 2019 followed by the current price swing to the downside.
Tools for analysis include the standard Bollinger band which uses a 20 simple moving average (SMA) engulfed by an upper band, 2 standard deviations above the value of the SMA and a lower band that is 2 standard deviations less than the value of the 20 SMA.
Also plotted on the chart is the 200 Day moving average and 50 Day moving average (MA) of Litecoin. As a guideline, periods of expansion of the volatility band are usually followed by contraction. An example of such scenario is marked by the blue box which currently shows a narrowing of the band after a previous expansion period downwards.
Narrowing of the band should therefore be followed by expansion or an increase in volatility upwards or downwards. Litecoin price testing the upper boundary of the Bollinger band on September 18 and 19, 2019 at ~77.31 without breaking out suggests weakness to the upside. Reversion back to the middle of the band therefore would be the minimum expectation to the downside with further downside expected if price does close below the 20 SMA and ~67.62.
Also supporting the current bearish scenario for today’s Litecoin analysis is the downward slope of the 50 moving average that coincides with the upper band of the band suggesting that more downside is to be expected.
Moreover, August 31, 2019 also saw the 50 moving average successfully cross below the 200 day moving average which also argues for a bearish sentiment in Litecoin.
On the other hand, a close above the 50 day moving average and 200, with the former moving above the latter would argue against further downside and therefore increase in bullish momentum in Litecoin.
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