Trade Recommendation: Litecoin
Our December 7, 2018 trade recommendation for Litecoin (LTC/BTC) hit its target on December 24 when it climbed as high as 0.008637. Those who took on the recommendation grew their investments by more than 22% in less than two weeks.
If you were not able to take on this trade, do not fret because there’s always another opportunity. This is especially true as Litecoin appears to be bullish in the short-term and the medium-term. A look at the daily chart tells us that the market wants to go higher.
Technical analysis shows that LTC/BTC is forming an inverse and head shoulders pattern on the daily chart. The neckline of this pattern is 0.0086. Currently, the market is struggling to take out this resistance. Thus, Litecoin continues to build its base while range trading between 0.0078 and 0.0086. This gives you some time to set low bids.
Also, it is important to note that we’ve recently seen the same setup in ChainLink (LINK/BTC). On our December 31 trade recommendation, we saw the exact same pattern unfolding. ChainLink also struggled for some time to take out the neckline of the inverse head and shoulders pattern. It finally broke out of the pattern yesterday, January 3, 2019. Today, the market is up by over 30% from the time of our recommendation.
We believe that Litecoin will likely follow ChainLink’s footsteps. A breakout from the inverse head and shoulders pattern can send the market skyrocketing to our target.
The strategy is to buy on dips as close to 0.0078 as possible. As long as Litecoin stays above this level, it will likely gather the momentum to take out resistance of 0.0078 and rally to our target of 0.00983.
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 0.008351 on Binance.
Summary of Strategy
Buy: As close to 0.0078 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.
Featured image courtesy of Shutterstock.