I wanted to prepare a chart to illustrate the current predicament Litecoin & to a greater extent, the entire altcoin market now finds itself in.
First a brief explanation of the format:
Green boxes show the beginning of a major rally in Litecoin's value in both USD (fiat) & BTC (ratio). These also mark the beginning of a lower support line for LTC when priced in BTC (the lite blue lines).
White boxes show the effect the ratio trade has on the fiat trade when the lite blue support line is tested. Notice how the uptick in fiat value is short lived when this occurs when Litecoin's value is central of it's historic fiat trading range, displayed by the dark blue support & resistance lines on the fiat chart.
The Purple box shows that even when this lite blue ratio support line is broken, it is of little significance while the fiat value is central of it's historic trading range (the dark blue lines).
Finally this brings us to the yellow box. You will notice on both the fiat & ratio chart Litecoin has now almost run out of bear territory. It will either break support, or the bulls will chase it onto higher ground. That much is obvious.
Breaking the ratio support line at this point in time in the current market cycle is nothing new, and it may even be argued that it's historically overdue. But to do so at this moment would also result in a break of support in Litecoin's fiat value! This has only ever happened once, since Litecoin's inception, for but a brief moment during a flash crash way back on the 25th October 2012. This time though the bears have worked Litecoin's fiat value down into this predicament.
Right now, Litecoin is either the most undervalued coin on the crypto market. Or what the Bitcoin purist have been saying about Litecoin & the entire altcoin market, was right all along.
Personally I'm hoping this is a new bottom for Litecoin.
First a brief explanation of the format:
Green boxes show the beginning of a major rally in Litecoin's value in both USD (fiat) & BTC (ratio). These also mark the beginning of a lower support line for LTC when priced in BTC (the lite blue lines).
White boxes show the effect the ratio trade has on the fiat trade when the lite blue support line is tested. Notice how the uptick in fiat value is short lived when this occurs when Litecoin's value is central of it's historic fiat trading range, displayed by the dark blue support & resistance lines on the fiat chart.
The Purple box shows that even when this lite blue ratio support line is broken, it is of little significance while the fiat value is central of it's historic trading range (the dark blue lines).
Finally this brings us to the yellow box. You will notice on both the fiat & ratio chart Litecoin has now almost run out of bear territory. It will either break support, or the bulls will chase it onto higher ground. That much is obvious.
Breaking the ratio support line at this point in time in the current market cycle is nothing new, and it may even be argued that it's historically overdue. But to do so at this moment would also result in a break of support in Litecoin's fiat value! This has only ever happened once, since Litecoin's inception, for but a brief moment during a flash crash way back on the 25th October 2012. This time though the bears have worked Litecoin's fiat value down into this predicament.
Right now, Litecoin is either the most undervalued coin on the crypto market. Or what the Bitcoin purist have been saying about Litecoin & the entire altcoin market, was right all along.
Personally I'm hoping this is a new bottom for Litecoin.