- Both the cryptocurrency market and the global stock indices market see a bullish breather.
- Litecoin ignores bear flag pattern formation rises 3.44% on Friday 12.
The global stock market corrected lower alongside the cryptocurrency market for the second time this year. The initial correction happened in February 2018. This situation has left many cryptocurrency traders surprised and buzzing with questions. However, it means that lack of correlation between these two markets does not translate to inverse correlation. Which also means that falling prices in the global stock indices market do not have to lead in a cryptocurrency market surge.
Litecoin (LTC) corrected lower breaking the support that had been established at $57. The drop was unstoppable below $54. However, LTC/USD downtrend slowed down marginally above $50.00. Following the declines, Litecoin formed a bear flag pattern with a support at $50.00. Upward correction from the support defied the reaction to the pattern extending gains above $53.00 but seller presence has limited movement past $54.
The trendline resistance is also limiting gains as seen in the 15-minutes timeframe chart. A break above this zone will trigger gains out of the upper range at $53.39. The prevailing trend is slightly bearish, although both the 50 and the 100 Simple Moving Averages are offering immediate support at $52.00. The MACD has retreated back to the mean line (0.0) while the Relative Strength (RSI) is making a slow but steady upward move above the 50% mark.
LTC/USD 15′ chart
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