LTCUSD Be Careful
It's been a difficult journey for crypto market over the past month, and we are still in the correction trend. For traders, the opportunities for huge gains have been presented as we've continued to drop past support lines and bounce back. Over the past couple of days, LTC was sold down to the low 100's, and this was around the bottom of the early Dec ATH run. There has been some positive news in the past few days as well. The SEC and CFTC meetings with Senate subcommittee has been perceived as positive as it appears all eyes are on crypto, but it doesn't appear much meddling will occur other than proactively monitoring and looking for ponzi/scam ICO's in the ALT space. Additionally, Litepay is bringing on LTC as a payment solution in the coming weeks. It's another notch in the belt for Litecoin as a potential mainstream coin used for retail. The stars "appear" to be aligning for a good year for Litecoin, but I personally won't be FOMO at this level.
Looking at the charts, mirror patterns have repeated on the way down. The bounce to 155 along with positive news HOPEFULLY has ended the downtrend. Using fib lines and support areas from Dec ATH to today, there is a former support line around 175 which will most likely be a resistance area. Also, the .786 fib line at 163 is nearby. If LTC breaks through these ranges, we could see a nice jump to the top of the downtrend line around 195, and if that breaks, we could see some special gains over the next couple of months. I don't see 155 as a buying area, but you never know how the FOMO folks will react to yesterdays gains. NOTE: LTC dropped from 155 to 150 while I was typing this idea.
On the flip side, if the mirror patterns continue, we could see another selloff back to the bottom of trendlines around 105, or even 96 at the zero fib line, and there is potential support at 135 (Ath Elliot Wave #2 support). HODLers are hoping for the prior, and traders are hoping for the latter. It's only a guess, but it feels like the days of 105's have passed, so guessing 135 range may be next opportunity to accumulate.
This is by no means investment advice, it's only an opinion. I'm personally sitting back and watching to see if another drop opens the door to pick up more coins, and if we break out of the downtrend...I'll be HODLing and trading the dips along the way.
Looking at the charts, mirror patterns have repeated on the way down. The bounce to 155 along with positive news HOPEFULLY has ended the downtrend. Using fib lines and support areas from Dec ATH to today, there is a former support line around 175 which will most likely be a resistance area. Also, the .786 fib line at 163 is nearby. If LTC breaks through these ranges, we could see a nice jump to the top of the downtrend line around 195, and if that breaks, we could see some special gains over the next couple of months. I don't see 155 as a buying area, but you never know how the FOMO folks will react to yesterdays gains. NOTE: LTC dropped from 155 to 150 while I was typing this idea.
On the flip side, if the mirror patterns continue, we could see another selloff back to the bottom of trendlines around 105, or even 96 at the zero fib line, and there is potential support at 135 (Ath Elliot Wave #2 support). HODLers are hoping for the prior, and traders are hoping for the latter. It's only a guess, but it feels like the days of 105's have passed, so guessing 135 range may be next opportunity to accumulate.
This is by no means investment advice, it's only an opinion. I'm personally sitting back and watching to see if another drop opens the door to pick up more coins, and if we break out of the downtrend...I'll be HODLing and trading the dips along the way.
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