What a mess, is what you would say if you look at the 1H litecoin chart.
Litecoin (LTCUSD) 1H Chart April 8th
(click to enlarge)
Here are some observations for Litecoin:
1) The 200-, 100-, and 50-hour simple moving averages (SMAs) are moving sideways and crossing each other back and forth. This shows a neutral and choppy market.
2) Price has been unable to stay on one side of the cluster of SMAs, another sign of sideways choppy trading.
3) The 1H RSI started the month pushing above 70. It has since held above 40 for the most part, which reflected the maintenance of bullish momentum. However, this week, we are seeing the RSI dip below 40. As we get into the April 8th session, it is sliding further below 40. If it tags 30, it would reflect some initiation of bearish momentum, but with the prevailing mode unclear, it might be seen more as a signal of an oversold market in at least the very short-term.
4) There was a range roughly between 1.73 and 1.68. This range was broken during the 4/6 session. Price action has since consolidated mostly below 1.68. This shows that bears are starting to take control, but the downside risk is limited at the moment.
Litecoin (LTCUSD) 4H Chart April 8th
(click to enlarge)
The 4H chart also shows a choppy market since ltcusd marked a March low around 1.60. Basically, there is a price range between 1.60 and 1.82. Price is essentially neutral within this range, but we can see some bearish bias.
1) The prevailing trend was bearish.
2) The 200-period SMA is above the 100-period SMA, which is above the 50-period SMA. This reflects bearish bias.
3) Price is trading under the SMAs.
4) The RSI has held below 60 for the most part after tagging below 30. This shows maintenance of the bearish momentum.
Now, with price choppy, but with bearish bias in the 4H chart, the bearish breakout in the 1H chart has significance even outside of the intrasession outlook. It puts pressure on the 1.60 low, with risk of breaking lower, which would open up the 1.10 low on the year.
Previous Post by Author: Litecoin Price Technical Analysis 6/4/2015 – Broken Support
Source : http://www.newsbtc.com/2015/04/08/litecoin-price-technical-analysis-for-842015/
