In this coin, $110 is a key point and is important for our analysis. We are net bullish because of this week’s events and it would be better if Litecoin buyers had enough momentum today to push prices above $90, our buy trigger. That would open the door for further upsides as laid out in our trade plan.
From the News
It’s the nature of men to aim jabs at stuff they don’t truly understand. And this applies to most critics “flowing” with mainstream media. These media outlets have over time been known to be on the fore-front spreading FUDs and other digs that paints a negative picture of cryptocurrencies. More often than not, these critics would be all over the place, lack coherence as to why they can’t find value in cryptocurrencies.
We are seeing the same traits with Agustin Carstens, the General Manager of the Bank for International Settlement (BIS). This bank plays a key role in banking and we can say it is some sort of central bank for central banks around their world. Often, their official stand or assessment on tradable securities can either make or break it but not crypto.
Agustin has been recorded on several occasions referring to cryptocurrencies as a Ponzi scheme, a scam and that there is no need of people to reinvent money. He even draws examples from history saying:
“creating money out of nothing has been a regular obsession in the past”.
But from what we have seen, Litecoin and other cryptocurrencies are proving to be useful utilities for people who want value and wary of authorities as central banks.
After the GFC, money printing and bailing out centralized institutions was the order of the day and that came at the expense of ordinary citizens. Litecoin is resistant to such influences and while it has no intrinsic value, it draws huge valuations since everybody trusts the system.
Litecoin (LTC) Technical Analysis
At this time frame, we won’t fail to notice that Litecoin has been on a downtrend since the beginning of the year. In fact by pasting a simple Fibonacci retracement tool between 22017 high low shows that the coin is down 80 percent from its ATHs. That’s not usual and is simply a deep correction which should there be a recovery, bulls might muster highs of $300 on the upper side.
Now, back to recent events and while odds of Litecoin closing as a bull this week is slim to none, it will be important if it does. First, that would mean a completion of a three bar bullish reversal candlestick, the Morning Star at key support line.
Secondly, prices would be trending above $90, a buy trigger line that is important for our analysis. This means-should our condition come to pass- next week hawks are free to search for buying opportunities and load with targets at $180.
Despite Litecoin being down four percent in the last day, it’s still up 12 percent in the last week and that encouraging. We anticipate further gains should we want to see a confirmation of a bull recovery back to $110 and $180 through in the weeks to come.
Overly though, my suggestion is to stay neutral until after we see buyers breaching $90 today now that there seems to be a rejection of higher highs. After wards, we would recommend buying on dips with targets at $110, a main resistance line previous support in this bear break out pattern.
Stops would be at July 2 lows at 480. If not and we see losses below $70, then we shall trade with the general trend with stops at $80 and first targets at $50.
Disclaimer: Views and opinions expressed are those of the author and aren’t investment advice. Trading of any form involves risk and so do your due diligence before making a trading decision.