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Litecoin Analysis – Running of the Bulls

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In this post I just wanted to go over what I see for Litecoin long-term as well as a few thoughts on short term. From a technological standpoint I believe Litecoin will always be a good testing ground for features that can be added into Bitcoin. There are many features being added soon. Charlie Lee is definitely trying to evangelize litecoin to be used as cheap and faster payments as opposed to bitcoin. This is actually where it shines. Litecoin is here to stay.

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Looking at the 1-day candle chart above I have drawn a couple of lines to show the long-term trend. According to the overall trend line I believe LTC will continue to rise as it finds higher levels of resistance with each breakout. The top line drawn I feel is not as solid or accurate as the lower drawn trend line as there was a huge bull run in mid-august that shot the price to all time highs. This quickly consolidated to lower highs with an expected correction happening around the beginning of September.

Four things that indicate Litecoin will hit a decent bullish run soon.

1. The overall trend line continues to go up.
2. There is a MASSIVE falling wedge which is a bullish sign that there will soon be an upward breakout
3. The RSI indicator is showing a level that is just right and not overbought.
4. The Bollinger Bands are tightening showing that the action is coiling and ready to breakout.

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4-hour chart:

When looking at the 4-hour chart I am a little concerned for the short term that we will may test $50 and maybe even $45 before it breaks out. Once the prices bounces off the lower wedge line or lower support and if we can get above $58.60 I believe that would be a bullish buy signal.

Having said this I believe that this is a bad short-term investment if you are looking for something to beat bitcoin. I don’t believe this will outperform bitcoin unless something spectacular happens to give it a boost. I would only use litecoin as a safe hedge against bitcoin while the forks are happening. If you are looking at litecoin as a 3-month or more long-term play then over the next few days would be a good time to get in. If you are looking for a good position then I would suggest $51 – $52.

Also, there are many altcoins to invest in to beat Bitcoin in the short-term. If you want a somewhat safe altcoin to buy until these recent major bitcoin hard forks are done then I would suggest Ethereum. In my opinion it is a better coin to buy than Litecoin at least for the short-term.

Let me know if this analysis helped and what other coins you would like me to analyze. CryptoDayTrader has left the building…

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2 Comments

2 Comments

  1. Chris G

    November 8, 2017 at 12:16 am

    good call, to say the least …

  2. fermera_dany

    November 8, 2017 at 4:01 pm

    I was watching LTC very closely, even without your recommend.
    However it was very well timed and helped me not miss the moment 🙂

    Thanks

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Trade Recommendation: XMR/BTC Pair Throwback

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The XMR/BTC market (Monero) has been in downtrend on the hourly chart after posting a high of 0.0225 on December 6 and failing to hold critical support at 0.02. It went to as low as 0.0145 on December 8 before respecting RSI at 32 where it established support. The market used the new support level to rally and generate one higher low after the other. It recently attempted to reclaim support at 0.02 but was repelled by bears. Currently, the market is trading around 0.019 levels where it appears to have created another higher low.

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Technical analysis shows a large reversal pattern in the hourly chart that can take the XMR/BTC pair to 0.025. Even though the market failed to breach resistance at 0.02, investors should not see it as a failed breakout. What we’re seeing is a throwback which is a temporary retreat in price. Throwbacks are common in breakout plays and are often seen as a bullish signal. The next time the market attempts to breach 0.02 resistance, it has a much better chance of breaking it with conviction.

The strategy is to buy breakout at 0.02 with immediate stop at 0.0189.

Hourly XMR/BTC Chart on Poloniex

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As of this writing, XMR/BTC is trading at 0.018714 on Poloniex.

Summary of Strategy

Buy: breakout at 0.02

Target: 0.025

Stop: move below 0.0189 after buying breakout at 0.02.

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

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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.



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Trade Recommendation: FCT/BTC Bullish Reversal

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The market reach its all-time high back in June this year when FTC/BTC (Factom) reached 0.01463162. Unfortunately, the pair wasn’t able to sustain its momentum. It created a lower high several days later at 0.01066744 which signalled investors to take profits or cut their losses. As a result, the market tumbled and lost 93.17% in value from its all-time high. Such a tremendous loss would have created an atmosphere of despair in the market. Usually, that’s when the savviest traders come in.

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Technical analysis reveals that the worst is behind the pair. FCT/BTC touched support at 0.001 on the daily chart twice and respected it on both occasions. This is a good indication that the market has found a reliable support level. In addition, hourly chart shows that a large reversal pattern is underway. The pair may have retreated when it nearly touched 0.002, but it generated a new higher low in the process at 0.00156566. The throwback is a bullish signal that enables the pair to gather momentum to break resistance at 0.002.

The strategy is buy on breakout at 0.002. Breach that level and the market reclaims 0.003. Sell that level because it is a strong resistance.

Hourly FCT/BTC Chart on Poloniex

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As of this writing, FCT/BTC is trading at 0.001738 on Poloniex.

Summary of Strategy

Buy: breakout at 0.002

Target: 0.003

Stop: move below 0.0018 after buying breakout at 0.002.  

 

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

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Trade Recommendation: ETC/BTC Pair Bottoming Out

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The ETC/BTC market has been in a downtrend after it generated a high of 0.00931529 in June and failed to hold support at 0.006 on Poloniex. Bears repelled any meaningful rally and sent the market to as low as 0.00129881. Fortunately for the bulls, it appears that the pair may have found its bottom.

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Technical analysis shows signs of selling exhaustion. First, ETC/BTC went into extreme oversold territory when the price reached 0.00129881. Second, and more importantly, the market revisited that level recently after it corrected from its move above 0.003. When the pair tested support, 0.00129881 was held even though the volume was twice its daily average on Poloniex. These indicators suggest that the pair has bottomed out.

The strategy is to buy between 0.00129881 and 0.002. Take note: the market is still in a downtrend, but there’s an opportunity to generate profits by trading the range. Sell when the market touches 0.0032.

Daily ETC/BTC Chart on Poloniex

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As of this writing, the market price of ETC/BTC is 0.00179752.

Summary of Strategy

Buy: between 0.00129881 and 0.002

Support: 0.00129881

Target: 0.0032

Stop: Move below 0.00129881

 

Disclaimer: The writer 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.



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