Trade Recommendation: Litecoin
The Litecoin/Bitcoin (LTC/BTC) pair has been in a downtrend since February 28, 2018 when it breached support of 0.02 support. This triggered the double top pattern on the daily chart. From that point, the pair has been generating a series of lower highs and lower lows within a descending channel. Four months into the downtrend, it appears that there’s a profitable trade opportunity.
Technical analysis show that LTC/BTC is respecting key support of 0.01. This is the price area when the pair launched its bull run back in December 2017. In technical analysis, former resistances become firm support levels.
In addition, the support is likely to hold as technical indicators flash bullish signals. The RSI is showing a bullish divergence. On top of that, the MACD is also showing a bullish divergence plus a bullish cross. These indicators reveal the market’s underlying strength.
Lastly, LTC/BTC managed to reverse its trend on the lower time frames. It broke out of an ascending triangle pattern on the hourly chart.
The strategy is to buy as close to 0.01 support as possible. Once this support is confirmed, LTC/BTC is cleared for take off. Initial target is 0.0155.
The process may take less than a month.
Daily Chart of Litecoin/Bitcoin on Binance
As of this writing, the Litecoin/Bitcoin pair is trading at 0.010378 on Binance.
Summary of Strategy
Buy: As close to 0.01 as possible.
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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