Connect with us

Analysis

$100 Litecoin Looks Poised for Greater Upside

Published

on

Litecoin prices moderated on Tuesday, but continued to hold above $100 as the outlook brightened on the world’s no. 7 crypto.

// -- Discuss and ask questions in our community on Workplace.

LTC/USD Price Levels

The Litecoin-dollar exchange rate slipped on Tuesday, but continued to trade near record highs. At press time, prices were down 1% at $100.75 for a total market cap of $5.5 billion.

Trade volumes reached $338 million over the past 24 hours, which is equivalent to roughly 29,290 bitcoin. That’s well below the nearly $636 million in turnover witnessed Dec. 2.

Nearly 20% of transactions on Tuesday occurred on the GDAX platform. The OKEx exchange accounted for roughly 15% of the volume. Crypto juggernauts Bitfinex and Bithumb turned over between 8% and 10% each.

// -- Become a yearly Platinum Member and save 69 USD and get access to our secret group on Workplace. Click here to change your current membership -- //

The cryptocurrency has added more than 7% over the past five days and is strongly bullish, based on the MACD and RSI charts. An RSI reading of 74 suggests the buying frenzy may be overdone and due for a minor pullback.

Prices peaked above $106 earlier this week for a new all-time high. Litecoin’s 52-week trading range is between $3.46 and $106.22, which represents a change of nearly 3,000%.

The next major milestone for Litecoin appears to be $110. Based on recent price action, that level appears to be a foregone conclusion as capital continues to pour into the altcoin market.

Litecoin’s Bright Future

LTC is enjoying tremendous support from the broader cryptocurrency community. Its gains have been partly attributable to bitcoin’s meteoric rise. As a less expensive, more readily available cryptocurrency, Litecoin is widely considered to be the silver to bitcoin’s gold. This means both cryptocurrencies often trade in the same direction, despite vastly different price points. This makes perfect sense, given that Litecoine was created as a hard fork of the original bitcoin blockchain.

One of the chief advantages Litecoin has over bitcoin is its focus on small transactions. The payment platform targets businesses that require a large volume of smaller transactions that need to be processed fairly quickly. Litecoin processes a block every 2.5 million, which is a fraction of bitcoin’s 10-minute mark.

Bitcoin’s viability as a payment system has been brought into question by many within the cryptocurrency community. That largely explains persistent efforts to fork the cryptocurrency in favor of a scalable alternative.

Litecoin is also considered one of the most attractive altcoins due to its inclusion on the Coinbase trading platform. By being listed on Coinbase, LTC joins elite company in bitcoin and Ethereum.

Coinbase is the largest U.S.-based cryptocurrency exchange and has more users than brokerage Charles Schwab. Coinbase currently has more than 13.3 million users, according to industry data. That includes 300,000 users in the last week of November. By comparison, Schwab reported 10.6 million active accounts for October.

 

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock. 

Important: Never invest money you can't afford to lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here.



Feedback or Requests?

Analysis

Technical Analysis: Litecoin Continues Surge as Bitcoin Tests Highs

Published

on

With the crypto world being focused on the historical futures launch, the major coins all enjoyed buying following a hectic weekend, and a volatile week as a whole. BTC itself got another boost from the widespread publicity and the volatile correction of the recent days ended, with the most valuable coin bouncing back towards its all-time high.

// -- Discuss and ask questions in our community on Workplace.

While the long-term picture remains severely overbought, the short-term picture is not stretched and further gains are possible even amid the elevated correction risk. That said, investors should wait for a more favorable entry point to ad dot their holdings, while traders should control position sizes in the light of the long-term setup. Major support levels are now near $13,000, $11,300, and $10,000, with stronger levels still at $8200 and $7700.

BTC/USD, 4-Hour Chart Analysis

// -- Become a yearly Platinum Member and save 69 USD and get access to our secret group on Workplace. Click here to change your current membership -- //

The major altcoins are all up today, but only Monero and Litecoin are still within short-term uptrends, and the segment as a whole is still dangerously overextended, and a deeper correction is very likely in the coming weeks. LTC continued its recent break-out, getting close to the $200 level, and joining the extremely overbought group regarding the long-term momentum, and triggering a long-term sell signal in our trend model. Key support levels are found $100 at $75 and $64, with a weaker primary level at $125.

LTC/USD, 4-Hour Chart Analysis

(more…)

Important: Never invest money you can't afford to lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here.



Feedback or Requests?

Continue Reading

Analysis

Long-Term Analysis of the Silver Market

Published

on

Silver

The silver market has once again caught investors’ interest as the price is nearing areas not seen since late 2008.

// -- Discuss and ask questions in our community on Workplace.

2017 started at a low point for silver, and it seems it will end the year that way as well, meaning investors who bought at the beginning of the year haven’t suffered nor gained much.

This doesn’t mean, however, that the price hasn’t moved during the year. After the low start of the year, silver quickly tacked on about 18% to a top of $17.50 per ounce.

In terms of fundamentals in the silver market, things look a bit complicated for 2018. There are multiple forces pulling in different directions for the price of silver going forward:

// -- Become a yearly Platinum Member and save 69 USD and get access to our secret group on Workplace. Click here to change your current membership -- //

Positives

  • A sharp stock market correction can be expected to occur some time in 2018. Most likely, this will happen sooner rather than later. Stock market crashes always trigger a flight to safety, meaning gold, silver, and quite possibly bitcoin, can benefit.
  • We are seeing signs that inflation may be starting to rise again, although this is not confirmed yet. Rising inflation is always good for precious metals.
  • If the US federal budget deficit widens as a result of the new tax reform, the US dollar may suffer as a consequence. Goldman Sachs put out a note to investors in November 2017 saying that the US debt is “on track” to reach an “unsustainable” level in coming years. Fed Chair Janet Yellen has also said about the US debt that it is “the type of thing that should keep people awake at night.” Rising debt levels creates uncertainty about the economy, which is generally good for gold and silver.

Negatives

  • Central banks around the world seem committed to raise interest rates in 2018. Rising interest rates are bad for precious metals because it would make it more attractive to put money in the bank.
  • The cryptocurrency bull market is on track to continue, diverting attention and capital away from precious metals as a traditional store of value. However, this one is uncertain, as it may also be considered a positive in the way that the rise of cryptocurrencies brings the inflationary and unsustainable nature of fiat currencies into focus.
  • The US dollar may have hit a bottom in 2017 and trade higher compared to other major fiat currencies going into 2018. A stronger dollar is always bad for precious metals, which are priced in dollars.

Silver chart

When looking at the chart, we can see that silver is back down to were it started the year, which coincides with a major support area where it has turned several times in the past few years.

From a technical perspective, silver has been trading in a triangle pattern on the longer-term weekly chart, with the price now trading very near the lower end of the triangle, adding confluence to our bias that silver will trade up from here.

Silver failed to live up to our prediction from early 2017, and is now even trading well below the level from that time.

A low price by any measure combined with two major technical support levels adds confidence to our trade and makes silver a low risk and potentially high reward trade for 2018.

Depending on your own strategy and investment style, you may want to wait for the price to break out from the current triangle pattern it has been trading in for the past year and a half. You would then give up some of the potential return for an even safer trade. After that, major resistance is found around $17.50 and $18, with lots of upside potential if we can finally break through those levels.

Featured image from Pixabay.

Important: Never invest money you can't afford to lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here.



Feedback or Requests?

Continue Reading

Analysis

Long-Term Cryptocurrency Analysis: Look Out Below?

Published

on

After last week’s observation that a major top is in or near in the segment, the Bitcoin surge continued for almost a week, with Thursday’s wild session taking the coin as high as $19,000 (the article uses Bitstamp prices) on some exchanges. While the currency already pulled back by more than 20% the long-term picture is still extremely overbought and a much deeper correction is likely in the coming weeks.

// -- Discuss and ask questions in our community on Workplace.

BTC spiked below $13,000 today, violating the primary weak support at $13,300, with further levels now at $11,300, $10,000 and $9000, but stronger support only found at $8200 and $7700. Next week’s futures launch could cause another jump in trading activity, and volatility is expected to remain very high amid the likely correction.

BTC/USD, Daily Chart Analysis

// -- Become a yearly Platinum Member and save 69 USD and get access to our secret group on Workplace. Click here to change your current membership -- //

While not all altcoins participated in the, supposedly, last part of the rally, IOTA, Monero, and towards the end of the week Litecoin, also stretched above all conventional targets with IOTA also turning exponential after a deal with Microsoft. The coin exploded by more than 350% before entering an initial sharp correction, breaking the steepest short-term uptrend. Strong support is only found at $3 and $1.5, but potential Fibonacci support is at $2.35.

IOT/USD, Daily Chart Analysis

Let’s see how the long-term charts of the other altcoins look after the crazy week.

(more…)

Important: Never invest money you can't afford to lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here.



Feedback or Requests?

Continue Reading

Trending