As mentioned in today’s bitcoin trade plan, the cyrptocurrency world has been relatively flat throughout this week on a lack of any real market moving fundamental events. Price action however, has not been anything but flat. Volatility across all of the major altcoin pairs has offered up some strong levels of support and resistance that, as described in today’s trade plan, present some profit potential. Here’s what you need to know.
First, as ever, let’s take a second to recap how we got to where things currently stand. The LTCUSD fell steadily throughout Sunday and Monday, finding support at weekly lows of 9.6787. This level served to reverse the downtrend, and the LTCUSD has traded to the upside over the past two days. A Tuesday cross above the 200 period SMA switched the short term technical bias from bearish to bullish, and bullish momentum has since brought the pair to fresh weekly highs at 11.3966. A small correction found support at 10.8111, which now serves as in term support. In term resistance lies at 11.1038.
Price action and these two levels should help determine an intraday technical bias. Sticking with the overarching trend, if the LTCUSD breaks in term resistance and logs a close above 11.1038, look for an initial upside target of aforementioned weekly highs at 11.3966. A break above these highs would bring April 24 support into play as a potential secondary goal.
Conversely, look for a break of in term support at 10.8111 to offer up a bearish technical bias. Last time the pair tested this level a bullish pin bar formed, suggesting it is relatively strong, but this is no guarantee that it will hold on a retest. A close below this level would validate 10.3116 as an initial downside target, and beyond that, look to April 28 resistance.
To contact the reporter of this story: Samuel Rae at Samuel@forexminute.com