- Recent surge followed Bitcoin .
- A breakout downward could see Litecoin reach towards $100.
Litecoin continues to follow Bitcoin's steps with the 6th Jan 18 surge up from $243 to $303 happening around the same time as Bitcoin's short recovery. It's also moving sideways forming a flag shape with a possible breakout in a few days from now.
But look at the height of that flag...About $375 to $175 from the top to the bottom. A breakout downward could mean seeing Litecoin aiming back below $100, though $150 and $100 should show support. But a breakout upwards? We then run into a strange situation. A breakout upward may see any new all time high limited by Bitcoin as Bitcoin approaches the 20k barrier (unless of course it breaks through it). For Bitcoin , the ceiling isn't far away and the bottom is a very long drop. For Litecoin, there's no nearby established ceiling yet but the current price isn't that far from the bottom.
As I place my entry at around $270 from a breakout upwards and $230 for a downward breakout, I then look over at Bitcoin and wonder whether a breakout would trigger any TP I set. The last on Bitcoin saw the price touch upward trend support line 3 times. With the past two heads and shoulders taking 8 to 10 days each and with Litecoin approaching the flag tip sooner, I'm thinking that rather than breaking out we might see it travel sideways (forming a ) until Bitcoin finds direction.
Buying Litecoin in the 100's would sure be a plus and something I'd hodl for a while. Should Litecoin progress back up in the 300s, it's still not that pricey. Might play it patient with this one.
And now for the disclaimer!
** This information is for educational purposes only and not intended for advice on trading **