Litecoin has caught my eye during the past few days... while most altcoins/bitcoin pairs sold off during the btcusd drop, litecoin has held strong. I have seen recent media articles questioning the profitability of btc miners should the price continue to fall... is fear in the air? What-if worst case scenario: btc drops below mining profitability, miners switch to alts and the btc network begins to slow/stop. Is this (hopefully distant) possibility generating interest in litecoin as the next best alternative?
The action in litecoin has been interesting this week. The previous resistance of the large ascending triangle has become support. Price has recently respected (twice) the long-term bold support line formed between December's low and February's spike down. If this support continues to hold, we could be at pivot point where price may suddenly spring higher. This could be fueled by panic in the bitcoin markets or any other reason that reveals litecoin may be underpriced relative to bitcoin.
Or litecoin could breakdown out of the support and signal much further moves downwards...
Despite bearish divergence between the last two peaks in the 24H MACD, there could also be some weak hidden bullish divergence between the two bottoms. 24H RSI appears to have already broken out, and could be hinting at the momentum for the next move.
In the shorter 6H time frame, litecoin is forming a symmetrical triangle, also strongly shown in the MACD and RSI.
Up or down, either way, litecoin is at a critical cross-roads. Watch closely for the next several days for additional clues. Something has to happen soon...
The action in litecoin has been interesting this week. The previous resistance of the large ascending triangle has become support. Price has recently respected (twice) the long-term bold support line formed between December's low and February's spike down. If this support continues to hold, we could be at pivot point where price may suddenly spring higher. This could be fueled by panic in the bitcoin markets or any other reason that reveals litecoin may be underpriced relative to bitcoin.
Or litecoin could breakdown out of the support and signal much further moves downwards...
Despite bearish divergence between the last two peaks in the 24H MACD, there could also be some weak hidden bullish divergence between the two bottoms. 24H RSI appears to have already broken out, and could be hinting at the momentum for the next move.
In the shorter 6H time frame, litecoin is forming a symmetrical triangle, also strongly shown in the MACD and RSI.
Up or down, either way, litecoin is at a critical cross-roads. Watch closely for the next several days for additional clues. Something has to happen soon...
Comment:
hmmmmm....
Trade active:
LTC appears to have made a decision. Key support and trendlines have been broken in price and indicators, now indicated with dotted lines. Further breaking of 24H RSI support could result in significant moves downward, this could be the first red candle of several on the 24H chart. I have a small short built at 0.01934... looking to close at possible fib retracements 0.018 and 0.017, although if BTC bounces here, LTC seems to want to follow.
Trade closed: target reached