Litecoin went sideways in general during the day on Tuesday, as we continue to see volatility in the crypto currency space. There’s an uptrend line just below though, which coincides with roughly $55, so I think it makes sense that the buyers will be attracted to this market. Recently, we have been forming somewhat of a symmetrical triangle, so this tells me that it’s only a matter of time before inertia comes back into the marketplace, and we need to make a move soon. Overall, I do prefer crypto currencies over the US dollar, but as of late the greenback has been showing signs of strength. That has caused issues in this market, just as it has in many others. However, the Bitcoin market has been very strong and it tends to lead the rest of the crypto currencies higher over the longer term.
Buying opportunity.
I believe that this is going to end up being a buying opportunity, and as soon as we can clear the $50 level above, the market is free to go to the $60 handle, the $62 handle, and then ultimately the $70 level. This is my base case scenario, but I do recognize that if we were to break down below the $54 level, the market is likely go down to the $50 level which of course is psychologically significant as well as structurally. All things being equal though, I feel much better going long and short of Litecoin, because I believe in the long run it is going to continue the overall uptrend that we have seen for so long. If we do sell off, I think it’s going to be a short-term phenomenon, and that eventually that should attract longer-term “buy-and-hold” traders.
