LTC/BTC Technical Analysis – 31st March 2014

Litecoin vs Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term has just produced a double top chart pattern, so any gains experienced over the weekend may come tumbling down over the next day or two.

Let's take a closer look at the LTC/BTC chart on the H4 timeframe (click to expand):

I've performed the Fibonacci study from the low of the past fortnight at 0.026, to today's high at 0.028.

I've highlighted the double top pattern in red ellipses. Now, take a look at the initial top on the far left. Prior to reversal, there were around eight candles possessing significant upper wicks. It rarely happens where so many consecutive candles share the same upper or lower wick length. This is a strong suggestion that price was about to fall. On its own, it's not enough, but with further corroborating technicals, it's absolutely fathomable, as when we had our first bear candle, the Accelerator Accelerator An accelerator or startup accelerator is defined as fixed-term programs that look to foster investment, connections, sales, and education to kindle growth in a project.Most commonly this effort constitutes a public pitch event, demos, and other forms of marketing. Startup accelerators are most commonly associated with Silicon Valley, a global hub for investing and fintech.Startup accelerators however are a global phenomenon that privately funded as an investment fund. This nature of investing he An accelerator or startup accelerator is defined as fixed-term programs that look to foster investment, connections, sales, and education to kindle growth in a project.Most commonly this effort constitutes a public pitch event, demos, and other forms of marketing. Startup accelerators are most commonly associated with Silicon Valley, a global hub for investing and fintech.Startup accelerators however are a global phenomenon that privately funded as an investment fund. This nature of investing he Read this Term Oscillator closed as red, whilst the Stochastics had just crossed over, heading downwards from an overbought position.

Price dropped sharply until 2.6, before rising again - to the previous high at 0.028. Since we've already had a sharp turn at this point before, then at the very least, without even looking at anything else, it's vital that since we're here again, caution be exercised, in terms of appreciating this area could be of noteworthy resistance.

Right now, price has retraced back to the 23.6% Fib level, and with both the Accelerator Oscillator and Awesome Oscillator indicators looking bearish, along with the Stochastics in overbought territory, then we're likely to see a drop to the 38.2% Fib level at 0.02755 over the next few candles. Whether it can push beyond there is questionable, since 38.2% has already been tested three candles prior, unless we have a candle close below that level, in which case I expect 50% to be hit - which would make this a convincing double top.