This week, LTCUSD fell from 9.13 to 8.2. Yesterday, we saw this cryptocurrency at the crossroad. While price was breaking below a rising trendline from last week, it was still trading above the 200-hour SMA.
– Looking at price action we basically saw a pair in a slightly bearish correction against last week’s rally.
– The correction was in a flag pattern.
– Today price held above the 200-hour SMA every time it was tested, and then ended the 7/17 global session with a breakout above the flag patter.
– The breakout also send price above the moving averages, and the RSI to 70. The breakout is thus a bullish continuation signal.
-When you look at the 4H chart however, you see that the prevailing trend has been bearish until last week when price started to climb up.
– Now in the 4H chart, we can see price attacking the 200-period SMA.
– However, you do see the bullish momentum building as the 4H RSI tagged above 70, then stayed above 40, and is rising above 60 again.
Basically, when you base your analysis on the prevailing trend the market has mixed signals, which reflects a market in consolidation, without a true trend. However, with this week’s price action seen as a flag patter, and price breaking above it, we can anticipate some short-term bullish attempt toward the July high at 9.13.
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