LTCUSD has just broken down a near-term support level, signaling that there could be more losses in the cards. Price is consolidating in what appears to be a bearish flag pattern and a break below the lows around $92.50 could set off a drop.
Price also seems to be coming off a double top formation, which is a classic reversal signal. However, the 100 SMA is above the longer-term 200 SMA so the path of least resistance might still be to the upside. This suggests that the uptrend is more likely to continue than to reverse.
Also, stochastic is pulling up to show that bullish momentum is picking up. Similarly, RSI is moving higher so LTCUSD might follow suit. A climb past the resistance at $105 could confirm that buyers are back in control, especially as the 200 SMA dynamic inflection point is holding as support for now.
The US dollar has advanced across the board recently on relatively good data and positive expectations for tax reform. The House and Senate are due to merge their respective versions of the tax bill, and coming up with one that’s ready for Trump to sign before the end of the year could mean more gains.
However, the US government appears to be approaching a shutdown on the impasse with the spending bill. But if previous instances are any indication, an eleventh hour deal is usually reached.
Meanwhile, litecoin is also giving up ground as cryptocurrency traders are moving over to bitcoin. This is due to the anticipation over the launch of bitcoin futures on CBOE, then on CME and Nasdaq. All in all, this would mean that bitcoin is accessible to more retail and institutional investors, which would then bring a flurry of activity at higher volumes.
This usually leads to a strong rally in bitcoin, so it’s understandable that a lot of traders are putting money on this particular digital asset as the launch dates approach.