Hodl those Litecoin's, impulse wave is forming again!
Fork's here and forks there, fork those forks. Litecoin aint forking and the "Bitcoin's Silver" concept is truer than ever.
Fundamentals
With Bitcoin getting all the attention on new ATH's being hyped all over, it's easy to forget about it's little bro, Litecoin.
If you delve into the fundamentals though, there is big reason to be excited about Litecoin. In fact, Litecoin is a much smarter investment than Bitcoin at this moment.
When it comes to Bitcoin the big dilemma is scaling. We have the big blockers and we have the lightning project.
The market obviously favors the latter as BTC is valued at much greater numbers than BCH. There is other factors within that equation, but still, I see the lightning way as the winning way.
Now what does that have to do with Litecoin?
Litecoin is Bitcoin's litte bro, it's silver to gold. It has a been incredibly important to the Segwit and lightning project. And when it comes to Atomic Swaps, BTCtoLTC is the example.
The magnitude of Litecoins role in the Core saga is uncertain though, but that's a story for another time and I don't count that as important for the next 2-4 months.
What this really comes down to is that when the Bitcoin Core way of scaling is favoured by the market, it's a good fundamental for it's always helpful little bro.
Should circumstances on this change, and they could do so rapidly, it would be very bad for Bitcoin and not so bad for litecoin (perhaps it would even be a positive).
That's why I am calling Litecoin a smarter investment than Bitcoin at this moment. The reward is bigger, and the risks are less.
I do have problems with Litecoin though, to make that clear, as I am sure many others have aswell.
There is not much being done with it, no one is trying to penetrate the market with it as Dash for example. It's just there, as a test rabbit for Bitcoin.
But overall I like the fundamentals for Litecoin in the short to medium term.
ALSO! Remember that Litecoin is on Coinbase. You know, that exchange that keeps getting massive amount of new signups and a huge percentage of the new stupid money that enters the space.
Technical
About a year ago I posted a trade idea on Litecoin "Let's Segwit this Coinbase addition!". Bought at 11.70 USD. Sold at 90 USD.
Now that's an incredible return! :)
If we go back on the chart I can see that we completed an impulse wave to get to that 95 USD top. We then had the correction wave and sideways action. Now it looks like we have started another impulse wave and is right in the middle of wave 3!
I think the third wave will be a strong one. I think the crypto market as a whole will see lots of green leading up to CME futures launch, with a big drop a couple days before.
For Litecoin that lines up perfectly with my FIB points at 128 USD. However, there is a good amount of resistance at 105 USD so the third wave might stop there and we would need to complete the fourth wave to advance.
In the event that Litecoin completes third wave at 105 USD I will hold my position until wave 5 target of 149. As fifth waves tend to be as strong or even stronger then third waves in crypto.
However, if third wave goes as strong as I hope and predict I will get out on that wave (125 USD). With that return I probably wont enter the market again for a try at the fifth wave as I don't like that risk/reward ratio.
Numbers
Fundamentals
With Bitcoin getting all the attention on new ATH's being hyped all over, it's easy to forget about it's little bro, Litecoin.
If you delve into the fundamentals though, there is big reason to be excited about Litecoin. In fact, Litecoin is a much smarter investment than Bitcoin at this moment.
When it comes to Bitcoin the big dilemma is scaling. We have the big blockers and we have the lightning project.
The market obviously favors the latter as BTC is valued at much greater numbers than BCH. There is other factors within that equation, but still, I see the lightning way as the winning way.
Now what does that have to do with Litecoin?
Litecoin is Bitcoin's litte bro, it's silver to gold. It has a been incredibly important to the Segwit and lightning project. And when it comes to Atomic Swaps, BTCtoLTC is the example.
The magnitude of Litecoins role in the Core saga is uncertain though, but that's a story for another time and I don't count that as important for the next 2-4 months.
What this really comes down to is that when the Bitcoin Core way of scaling is favoured by the market, it's a good fundamental for it's always helpful little bro.
Should circumstances on this change, and they could do so rapidly, it would be very bad for Bitcoin and not so bad for litecoin (perhaps it would even be a positive).
That's why I am calling Litecoin a smarter investment than Bitcoin at this moment. The reward is bigger, and the risks are less.
I do have problems with Litecoin though, to make that clear, as I am sure many others have aswell.
There is not much being done with it, no one is trying to penetrate the market with it as Dash for example. It's just there, as a test rabbit for Bitcoin.
But overall I like the fundamentals for Litecoin in the short to medium term.
ALSO! Remember that Litecoin is on Coinbase. You know, that exchange that keeps getting massive amount of new signups and a huge percentage of the new stupid money that enters the space.
Technical
About a year ago I posted a trade idea on Litecoin "Let's Segwit this Coinbase addition!". Bought at 11.70 USD. Sold at 90 USD.
Now that's an incredible return! :)
If we go back on the chart I can see that we completed an impulse wave to get to that 95 USD top. We then had the correction wave and sideways action. Now it looks like we have started another impulse wave and is right in the middle of wave 3!
I think the third wave will be a strong one. I think the crypto market as a whole will see lots of green leading up to CME futures launch, with a big drop a couple days before.
For Litecoin that lines up perfectly with my FIB points at 128 USD. However, there is a good amount of resistance at 105 USD so the third wave might stop there and we would need to complete the fourth wave to advance.
In the event that Litecoin completes third wave at 105 USD I will hold my position until wave 5 target of 149. As fifth waves tend to be as strong or even stronger then third waves in crypto.
However, if third wave goes as strong as I hope and predict I will get out on that wave (125 USD). With that return I probably wont enter the market again for a try at the fifth wave as I don't like that risk/reward ratio.
Numbers
- Buy - 86 USD
- Sell - 125 USD
- Stop Loss - Break of Pitchfork support.
Trade closed: target reached:
Target has been reached for this trade!
I am still going to hold LTC in my portfolio, but I sold out what I had in this trade at 149 USD.
73% profit on this one :)
Litecoin showed us yesterday that it can fly when it starts up.
I think there could be more room to grow, and I'll try to get another idea up.
However, taking long positions right now can be risky.
Litecoin fundamentals right now don't support a crazy run.
I am still going to hold LTC in my portfolio, but I sold out what I had in this trade at 149 USD.
73% profit on this one :)
Litecoin showed us yesterday that it can fly when it starts up.
I think there could be more room to grow, and I'll try to get another idea up.
However, taking long positions right now can be risky.
Litecoin fundamentals right now don't support a crazy run.
Nothing is a good buy atm. Litecoin could potentially go down to 50 USD.