Litecoin Price Technical Analysis for 18/9/2015 – Very Helpful Trading Points

Litecoin is currently trading at $2.894, extending its stay in the range of $2.500-$3.200 after the US Fed decided to hold off on raising the interest rates. The move has also buoyed the Bitcoin market which is pushing for higher levels as short covering begins.

Today’s analysis will bring forth some valuable trading points, discovered after researching the weekly LTC-USD price chart.

litecoin price chart

Image: http://ift.tt/1Kl21xE

Litecoin Chart Structure – The chart above clearly tells that Litecoin has been consolidating in a small range for more than two weeks now. In the previous week, Litecoin erased all the gains it achieved prior to that week, and the closing level of this week may offer important clues about the probable price action.

Moving Average Convergence Divergence – Here comes the first surprise. Even though the cryptocurrency is holding its ground, the situation is worsening on the technical front. The Histogram is continuously increasing its losses for the third straight week as MACD continues to slide. MACD is barely positive at 0.1005 while Signal Line is at 0.2710. The Histogram now reads a value of -0.1706.

Momentum – The Momentum value has succumbed to the lowest level of 2015 i.e. -2.3431, even as the price presents a different picture. This is indeed a big divergence!

Money Flow Index – Another surprising aspect came from the MFI weekly reading of 69.7804. This is very close to the overbought level of 80.

Relative Strength Index – Even on a weekly basis, the RSI nowhere supports the bullish view with a value of 47.8715.

Conclusion

Based on the above technical factors, I can say that the price action of Litecoin is a bit misleading. Even though it is holding its head near $3.000, the inherent structure is considerably weak.

Market participants should pay heed to the above considerations and continue to dump Litecoin on rallies.

CoinWidgetCom.go({
wallet_address: ‘1Pagkvzv1EfnoFp6nzpuNEZHWCeyvbJriB’,
currency: ‘bitcoin’,
counter: ‘hide’,
lbl_button: ‘Tip us’,
lbl_count: ‘donations’,
lbl_amount: ‘BTC’,
lbl_address: ‘Use address below to donate. Thanks!’,
qrcode: true,
alignment: ‘bl’,
decimals: 2,
size: “small”,
color: “dark”,
countdownFrom: “20”,
element: “#coinwidget-bitcoin-1Pagkvzv1EfnoFp6nzpuNEZHWCeyvbJriB”,
onShow: function(){},
onHide: function(){}
});



Source

from Latest Bitcoin News | Crypto News | Mining Reviews – Bitcoins Channel http://ift.tt/1Km8g44
via IFTTT

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s