Trade Recommendation: Litecoin
If you’ve been following our Litecoin (LTC/BTC) trade recommendations, you would have significantly grown your investments. Our January 12 trade recommendation hit both of our buy and sell targets. If you bought at 0.0085 between January 13 to January 20, 2019, you would have grown your investments by over 40% as of February 8 when the market rallied to as high as 0.0121.
If you’re happy with your gains, allow us to tell you that Litecoin is just getting started. The trade volume on February 8 was the market’s highest trading volume in a year. Market participants have shown their hand. They are positioning in anticipation of a very big move. You may want to be a part of this.
Technical analysis shows that LTC/BTC has broken out of an inverse head and shoulders pattern when it took out resistance of 0.01 on February 8. In technical terms, the price action indicates that the market has bottomed out. More importantly, the inverse head and shoulders breakout signifies the shift in sentiment from bearish to bullish. In other words, Litecoin is now in an uptrend.
Currently, Litecoin is in overbought territory on the daily chart. It must consolidate or significantly pull back to allow technical indicators to cool off. This should give us the chance to go long on the market.
The strategy is to buy on dips as close to 0.01 as possible. As long as Litecoin trades above this level, bulls will likely gather the momentum to hit our targets of 0.013 and 0.018.
The process may take a month.
Daily Chart of Litecoin/Bitcoin on Binance
As of this writing, the Litecoin/Bitcoin pair is trading at 0.011809 on Binance.
Summary of Strategy
Buy: As close to 0.01 as possible.
Targets: 0.013 and 0.018.
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.