LTCUSD Technical Analysis for 11/21/2017 – Larger Uptrend Correction Underway?

LTCUSD is starting to break below its short-term ascending trend line to signal a potential selloff. However, price could draw support from the larger ascending channel formation around $68.

The 100 SMA is still above the longer-term 200 SMA, so the path of least resistance is to the upside. The gap between the moving averages is also widening to reflect stronger bullish momentum while the short-term SMA is close to the rising trend line support and could still hold as a dynamic inflection point.

Stochastic is pointing down, though, so sellers are on top of their game. Similarly, RSI is moving lower so LTCUSD might follow suit until both oscillators hit oversold levels and turn back up to reflect a return in bullish pressure. Once that happens, LTCUSD could make its way back up to the channel resistance around $75 or higher.

The US dollar regained ground on hopes that the November FOMC minutes would seal the deal for a December hike. However, tightening expectations are so high up that there’s plenty of room for disappointment. Traders are also hoping to glean clues for next year’s monetary policy time frame.

Meanwhile, cryptocurrencies appear to be retreating mostly due to profit-taking ahead of the Thanksgiving weekend. This could mean more losses in the days ahead as liquidation carries on before potential gaps when most financial markets resume trading the following Monday.

Of course with lower liquidity comes higher volatility so it’s understandable that most market participants want to reduce exposure. Any headlines that come up during the long weekend could have a potential for leading to huge spikes in either direction, after all.

In particular, traders appear wary over the fresh set of sanctions to be imposed by Trump on North Korea and updates on CME bitcoin futures. The group clarified that they haven’t set an exact date since it is still pending regulation, so there’s still a considerable degree of uncertainty involved.

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