Litecoin price dipped down below the 20,50 and 100 EMAs again, on the 1 hour (BTC/USD) charts, after hitting $3.34 yesterday. It seems that someone is dumping a large number of litecoins into the market (this is just my personal opinion). We might see the price fall to much lower levels as it will only face significant support only at $2.80.
4 Successive Bearish Candles on 1 Hour Charts:
By studying the one hour (LTC/USD) charts from Bitfinex (look at the below chart), plotting 20,50 and 100 EMAs and keeping the Fibonacci resistance fan we plotted earlier last week , we can notice the following:
- We can now draw slightly sloping pair of downside trends that illustrate the path of litecoin price since the 7th of November (the two red trend lines on the below chart). The price has been following a semi “sine line”-like chart pattern and the downtrend is always reversed when it touches the bottom trend line.
- Today’s trading sessions have led to the formation of 4 successive bearish red candlesticks which reflect an unjustifiable fall of price that goes against what we have been seeing throughout the charts during the past couple of days, especially that yesterday the price climbed well above the 20 and 50 EMAs.
Bears in Control On the 1 Day Charts:
By studying the 1 day (LTC/USD) charts from Bitfinex (look at the below chart), plotting William’s Alligator indicator and executing the MACD indicator, we can conclude the following:
- William’s Alligator indicator: The 8 moving average (green line) is down sloping and is about to touch the 13 moving average (red line), so the long trade signal that has been shown by this indicator during the past few days is going to disappear shortly.
- The MACD indicator is now suggestive of a down trend as the blue positive trend line has crossed under the red negative line.
Conclusion:
Litecoin price has been dropping during the past 24 hours. Our analysis suggests continuation of this down trend. Price will only face significant support at around $2.80.
Charts from Bitfinex; hosted on Tradingview.com
