In this technical analysis of ETHUSD October 2018 we go through montlhy chart, weekly chart, daliy chart and hourly chart with comments. Also, we finish the artcile with a conclusion.
Technical Analysis of ETHUSD October 2018
LTCUSD: Monthly Chart
Similar to every other cryptocurrency in the top ten, the year 2017 was a bullish one for the cryptocurrency market as most individual investors and hedge funds put in some risk capital into the sector.
Using the image illustration above as a guide; starting from the month of July, a double bullish accumulation price action pattern was triggered thereby sending the pair into a rising range. A bullish breakout of an inside bar candle pattern was later formed, sending the pair to its all-time high of $420.00. All attempts for the bulls to resume the bullish trend of 2017 have been refuted by counter bearish accumulation patterns. First bearish accumulation pattern was triggered in the month of July, followed by a second and more recent one formed at the bearish close of September.
LTCUSD: Weekly Chart
This is why I personally love a multiple time frame analysis of any trading security. The weekly chart shown above zooms the break out of the inside bar pattern of the monthly chart as a break out of a bearish accumulation pattern, on the 9th of October and November 2017.
Signalling an end to the bullish rally and a probable beginning of a bearish trend, the bearish accumulation pattern formed on 25th December 2017 was triggered. On the 19th February 2018, a bullish accumulation pattern failed to a bearish price breakdown, causing the pair to flow into huge oscillation which slightly correlates with the ETHUSD chart.
The bearish trend was later resumed by a bearish accumulation pattern formed on 14th May 2018, flowing into a breakdown of another bullish accumulation on 30th July. More recently on 27th of August ’18, a bullish breakout of a bearish accumulation pattern was fired, which gives clues to a recovery of the bulls.
LTCUSD: Daily Chart
For more clarity into the breakout of bearish accumulation pattern of the weekly chart, we switch to the daily chart. Following the above time series illustration, a bearish trend triggered by a bearish accumulation pattern flows into a bearish hidden divergence pattern on 5th September ’18, which was later terminated by an opposite bullish divergence pattern which coincided with a breakout of a bearish accumulation pattern. This brings price close to the 65-period moving average where a triple bearish accumulation pattern is triggered on October 1 as well as a confluence of events of a bearish hidden divergence pattern.
LTCUSD: 4-HOUR Chart
The bearish regular divergence patterns formed on 23rd and 28th September indicate a weakness of the bullish trends, hence the resuming of higher time frame bearish trends. A breakdown of bullish accumulation pattern formed on 02 Oct ’18 08:00 shown on the above chart, trigger a short-selling trade at $59.66 with a stop loss at 61.66 and take profit target of $54.35.
LTCUSD: 2-HOUR Chart
Taking a look at the above 2-hourly chart, we’ll notice price sitting on the support level established by the bullish hidden divergence pattern triggered on 29th September ’18 06:00. Patterns we found interesting are the breakdown of bullish accumulation patterns formed on October 1 and October 2.
Conclusion and Projection
The exchange rate of the LTC to USD has a very bearish outlook. Taking our entry trade from the 2-hourly chart, a short-selling trade can be placed at the current market price of the attached 2-hourly chart, with stop loss and take profit targets placed at $61.87 and $57.00 respectively.