Litecoin has been on a majestic bull run somewhat suddenly. Even when compared to bitcoin
as seen on this LTCBTC
chart, its been an epic couple of weeks. A few things I'm observing here makes me like litecoin as a multi-week trade. The floor of this chart is extremely healthy. A fib retracement from Dec '17 lows to the Feb 2018 highs shows how sellers got trapped (or greedy if short) selling at high volume
on a close below the 88.6 fib, only for buyers to re-appear and price to float slowly higher. I see the potential for a cup & handle
pattern developing here. The weekly chart Ichimoku cloud
system suggests we should begin to see some strong resistance as the Chinkou Span (orange lagging line) challenges the cloud top (also the 38.2% fib). At this point, I expect a decent dip, maybe even a lower shadow challenging the bottom of the Ichimoku cloud
, but likely not a weekly close below the 61.8% retracement
point, similarly to what we saw earlier this week before the blast-off. This could be anytime in the next few weeks (maybe even the next few days). I plan to add more Litecoin to my crypto portfolio anywhere around the 0.013 BTC
price. A drop below 0.010 BTC
would suggest weakness, and a weekly close below 0.012 BTC
may even spell short-term pain. However, the pattern isn't technically invalidated unless it takes out the previous lows, and as we've seen time and time again, crypto loves to trap with excruciating wicks.
As far as targets go, 0.03 BTC
is absolutely possible by this summer. I won't necessarily hold all my LTC until then, simply because it tends to be so volatile, but if we approach this price point, I'll definitely be letting some loose. Expect resistance at psychological levels ($100 may be right around the corner), but unless we start putting in lower lows again, I don't see getting bearish
again as a very good idea anytime soon.