LTCUSD. The bearish story goes on
1] It was the first instance when LTC has been trading above round number 80. Poor closing amid high volume (x2 times higher than average) put a question on hidden weakness.
2] First early bearish confirmation. Price reversed down too fast. Bulls demonstrated their incapability to hold a price above 80. Let’s assume, it was a temporary failure. In this case, they should use their advantages and recover in a strong manner. But…
3] … the chart states a lack of demand on the next attempt to settle LTC price above 80 figure. A timid up-bars amid volume below average – this is an indication of low-activity caused by lack of traders who agree to pay so expensive price. A small unit of LTC bulls was pacing in the hostile territory until…
4] …this bearish attack! The market changed its behavior.
5] Further ND+SB pattern (I believe it was micro SLKT above 80 level)
6] Bears are encouraged by the failure of bulls around 80 level, and we got this Supply Pressure bar.
7] Supply pressure culminates below 70 round number. Some big interest entered the market to use a situative oversold instance and absorb a Flow of Panic Sell-at-market orders.
8] Floating Supply has melted.
9] And we got minor Bullish Change.
We got a clear indication of strength (around 70) and weakness. So, it is a rational idea to expect the sideways churning between these two levels.
10] Reverse down
11] Reverse up
12] Reverse down.
Should the 70th act as support again? While we have an indication of bearish pressure (an increase of volume amid price decline) – odds are on the bearish side. No need to use a crystal ball and predict the future. Rely on a chart and its indication, let the market speak from itself where it wants to go.
PS. ND+SB (with or without SLKT) around 70 level will be very disappointing news for bulls.
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