Sally Ho's Technical Analysis 30 July 2019

Litecoin

Litecoin (LTC/USD) lacked decisive conviction in today’s Asian session as the pair continues to search for market sentiment following its recent sharp decline from the 96.53 area to the 86.57 level.  The move on Saturday to the 96.53 area saw the pair unable to move far above its 50-bar MA (4-hourly) and 100-bar MA (4-hourly), or its 200-bar MA (hourly). In recent trading sessions, the pair has hugged the 88.68 area, representing the 23.6% retracement of the move from 304.00 to 22.17. Chartists are also paying close attention to the pair’s behaviour around the 87.86 area, representing the 76.4% retracement of the move from 76.63 to 106.04.

Traders continue to focus on the 83.34, an important downside price extension objective that became relevant on account of price activity following the pair’s recent peak around the 146.00 area on 22 June. The market traded as low as 83.27 during yesterday’s Asian session before recovering. The pair’s inability to retest the 107.27 area on 18 July and 20 July reinforced the significance of the 83.34 area. The next downside price extension objective related to this range would include the 63.99 area, a level that is considerably below the market.

Price activity is nearest the 50-bar MA (4-hourly) at 92.72 and the 50-bar MA (Hourly) at 89.12.

Technical Support is expected around 83.27/ 75.06/ 69.47 with Stops expected below.

Technical Resistance is expected around 95.86/ 99.10/ 106.04 with Stops expected above.

On 4-Hourly chart, SlowK is Bullishly above SlowD while MACD is Bullishly above MACDAverage.

On 60-minute chart, SlowK is Bearishly below SlowD while MACD is Bearishly below MACDAverage.

Bitcoin Cash

Bitcoin Cash (BCH/USD) continued to eye some key levels early in today’s Asian session as traders search for market direction following Saturday’s sizable move lower that saw the pair depreciate from 326.00 to 297.38. Sunday’s market activity saw an extension of that weakness as the price moved lower to the 288.73 after testing technical Support around the 289.18 level, representing the 38.2% retracement of the move from 638.55 to 73.22. Some of the market’s enthusiasm for stronger prices fizzled out on Saturday after small Stops were elected above the 323.01 area, representing the 23.6% retracement of the move from 255.06 to 344.00.  If the pair continues its downward trajectory, it may test other retracement areas related to that range including the 289.04 and 276.05 levels.

Chartists are observing an interesting convergence of the 50-bar MA (4-hourly) and the 100-bar MA (4-hourly) around current market activity, and this may result in the market gaining some direction and conviction. Likewise, a convergence of the 100-bar MA (hourly) and the 200-bar MA (hourly) is nearing, and this could also result in a market bias developing.  The 289.04 and 288.15 levels are important downside price objectives related to the pair’s recent decline, and traders are also noting that the 276.05 is a downside price extension objective as well. If additional bearishness develops below those levels, the 255.06 area becomes relevant.

Price activity is nearest the 50-bar MA (4-hourly) at 307.43 and the 50-bar MA (Hourly) at 305.25.

Technical Support is expected around 275.42/ 262.40/ 237.83 with Stops expected below.

Technical Resistance is expected around 323.01/ 331.64/ 344.09 with Stops expected above.

On 4-Hourly chart, SlowK is Bearishly below SlowD while MACD is Bearishly below MACDAverage.

On 60-minute chart, SlowK is Bearishly below SlowD while MACD is Bearishly below MACDAverage.