Litecoin went sideways for most of the session on Friday, but turned around to show strength. We broke above the $60 level, and it looks as if we are testing the resistance region that extends to the $62 level. Crypto currencies in general continue to look healthy, as we are starting to see some buying pressure in the market. If we can break above the $62 level, then the market should go much higher, perhaps reaching to the $65 level next. That’s a large, round, psychologically significant number, but given enough time I don’t see why we wouldn’t be able to break above there. The $58 level continues to be supportive, so break down below there would be negative, perhaps sending the market back towards the $55 level underneath which has been supportive. The 20 SMA on the Bollinger Bands continues to try to turn higher, and once it does that should bring in more momentum.
The market continues to buy dips, and therefore I think it’s only a matter of time before we reach higher. I think we will eventually look at the $62 level as support, as the buyers become more aggressive. The last couple of hours during European trading on Friday was particularly aggressive, so I think we are going to see the Americans continue to buy. While I do expect a bit of noise above, I think that we will see the buyers prevail, as the $70 level was a recent high, and I think that many of the traders out there will be looking to “dollar cost average” into the Litecoin market.