Analysis provided by Ashton Fraser, learn more about his trading strategies with the Forex Reversal indicator.
And what an expansion it was, only to be halted by some strong resistance. Take a look at the LTC/BTC H4 chart below:
As we can see price has risen to 0.0275, and given this area has had previous in regards to resistance, it's of no surprise price refused to go beyond that.
Hence, I've performed the Fibonacci study from the week's low on the 9th of March at 0.0248 until today's high at 0.0275. An increase of more than ten percent in barely a couple of days might not sound like much in the crazy world of Cryptocurrencies , but it's still significant nonetheless, especially given how tight trading has been in recent hours:
The most important candle here of course is the one marked with a blue ellipse. That is one powerful, bull candle. Look how it smashed right through the upper Bollinger band, with more than half of the body above the candle. This is rare, and when such price action occurs, it's vital to take note.
Then, look at the candle marked with a red ellipse, its upper wick extremely long, with the entire candle outside of the bands. Unsurprisingly, a retrace was forming, and soon after, the two Bill William's Oscillators, Accelerator and Awesome turned red, whilst the Stochastics, have just crossed down, in a very over bought position.
It's almost inconceivable that price won't touch the 23.6% Fibonacci retracement level now, seeing as though we're already very close. We may see a bounce off 23.6%, before another push down to 38.2% later on.
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